South Africa has granted approval for the first group of cryptocurrency businesses to legally conduct operations within its borders.
The Financial Sector Conduct Authority (FSCA) has granted crypto licenses to 75 businesses in this sector for the first time. Among the recipients are VALR and Altcoin Trader, along with other companies.
Starting from June, 2023, the local regulatory body began processing applications for crypto licenses. Companies in the cryptocurrency sector wishing to obtain a license submitted their applications by November of the previous year.
The development of the crypto industry in South Africa
The cryptocurrency market in South Africa is expanding rapidly, with Statista predicting that it will be worth approximately $246 million in 2024. This growth is expected to continue at a steady annual rate of 7.86% through 2028, resulting in a total value of around $332.9 million by the end of that period.
In the country, various elements contribute to the expansion of the cryptocurrency market. Some key factors fueling this growth include:
Acceptance of crypto payments
In simple terms, the use of cryptocurrencies as a means of payment is gaining popularity rapidly within the country. An growing number of businesses and individuals are embracing this digital currency, thereby fostering the expansion of the crypto market within the nation.
Inflation and economic scenarios
In simpler terms, cryptocurrencies are gaining importance in Africa’s economic landscape. They offer innovative methods to address challenges like limited access to traditional banking systems and escalating price increases in local markets.
Blockchain and technology infrastructure
South Africa is building a robust technology foundation, fueling the growth of its cryptocurrency market. This progress is driven by the advancements in the blockchain sector.
South Africa is rapidly emerging as a major player in the cryptocurrency sector across Africa. This is due to a number of favorable conditions that make the country an attractive hub for crypto innovation and growth. As a result, South Africa is poised to continue driving the advancement of cryptocurrencies within the African continent.
Also Read : South Africa: Crypto & CBDC Explored for Payments Boost
Read More
Sorry. No data so far.
2024-04-23 13:08