South Africa made history quietly. In October 2022, the country declared crypto assets as financial products under the Financial Advisory and Intermediary Services Act. The announcement was a single line in a gazette notice. The implications were anything but small.
For the first time, running a crypto exchange in South Africa without a license wasn’t a grey area , it was clearly illegal. And for founders who’d been waiting for regulatory clarity before entering Africa’s most sophisticated financial market, the wait was over.
The Financial Sector Conduct Authority (FSCA), which operates in coordination with the South African Reserve Bank (SARB), began accepting applications for Crypto Asset Service Provider (CASP) licenses in 2023. Hundreds of applications came in. Not all were approved.
Here’s what separates the companies that got licensed from those that didn’t.
SARB vs FSCA: Who Owns What?
This distinction confuses almost every international founder entering South Africa:
SARB (South African Reserve Bank) is South Africa’s central bank. It governs systemic financial stability, exchange controls, and payment systems. If you’re moving money across borders or handling significant payment flows, SARB’s regulations — particularly the Currency and Exchanges Act, directly affect you.
FSCA (Financial Sector Conduct Authority) is the market conduct regulator. The FSCA issues CASP licenses, enforces investor protection, and supervises the ongoing compliance of licensed crypto businesses. For most Web3 founders, the FSCA is the primary regulator you’ll deal with day-to-day.
They work together. SARB sets the macro framework for payment and foreign exchange compliance. FSCA sets the micro requirements for how you treat your customers, protect their assets, and report to regulators. You need both on your side.
Who Needs a CASP License?
The FSCA’s definition of a Crypto Asset Service Provider is broad. You likely need a license if you:
- Buy, sell, or exchange crypto assets on behalf of clients
- Operate a crypto exchange platform
- Provide crypto custody or safekeeping services
- Offer crypto investment advice or portfolio management
- Facilitate crypto-to-fiat or fiat-to-crypto conversions
- Operate a peer-to-peer trading platform
If you’re unsure whether your specific model requires a CASP license, consult a South African financial services attorney before launching. The penalties for operating without a license are significant — including fines and criminal prosecution.
The CASP Application: What the FSCA Actually Expects
The FSCA CASP application is detailed. Here’s what you’ll need to prepare:
1. Local Company Registration
Your business must be registered with the Companies and Intellectual Property Commission (CIPC) as a South African entity before you can apply. This is non-negotiable. Register your South African company with Norebase →
2. Fit and Proper Assessment
All key individuals — directors, compliance officers, senior managers, must meet FSCA fit and proper requirements. This means no prior regulatory sanctions, no criminal convictions related to financial crime, and demonstrated competency in financial services.
3. Capital Adequacy
The FSCA has set minimum capital requirements for CASPs. These vary depending on the nature of services offered. You must demonstrate ongoing capital adequacy, not just at the point of application.
4. Compliance Framework
A comprehensive compliance manual is mandatory. This must include: AML/CFT procedures aligned with the Financial Intelligence Centre Act (FICA), client onboarding and KYC protocols, complaint management processes, and record-keeping procedures.
5. Technology and Custody Controls
The FSCA expects robust documentation of your technology infrastructure, particularly how you store and protect client crypto assets. Cold storage protocols, access controls, and insurance arrangements for client funds are expected.
6. Ongoing Reporting
Licensed CASPs must submit annual reports to the FSCA, report suspicious transactions to the Financial Intelligence Centre (FIC), and maintain transaction records for a minimum of five years.
FSCA CASP License: Timeline and Costs
Processing times for CASP applications have ranged from 3 to 12 months depending on application completeness and the volume of submissions the FSCA is processing. A complete, well-prepared application moves faster.
Application fees are set by the FSCA and vary by service category. Engage a local compliance consultant early — the cost of a rejected application (and re-submission) far exceeds the cost of getting it right the first time.
The SARB Exchange Control Layer
If your crypto business involves cross-border money flows — which most do — SARB’s exchange control regulations apply. South Africa has historically maintained strict currency controls, and crypto transactions that effectively move value out of the country are subject to reporting requirements.
The South African Revenue Service (SARS) has also issued guidance on crypto taxation: crypto assets are treated as financial instruments, and capital gains tax applies. Build this into your product’s UX and your customer disclosures from day one.
Frequently Asked Questions
Can I operate in South Africa while my CASP application is under review?
The FSCA provided a transitional period for existing businesses. For new entrants, you should not be providing CASP services prior to license approval. Confirm current transitional provisions directly with the FSCA.
Can a foreign company get a CASP license?
The CASP license is issued to South African-registered entities. You must have a local company incorporated before applying. Foreign parent companies can hold shares in the South African entity.
What happens if I operate without a CASP license?
Operating as an unlicensed CASP is an offence under the FAIS Act. Penalties include significant fines, and the FSCA has actively pursued enforcement actions against unlicensed operators.
Does the SARB regulate stablecoins differently?
SARB has been developing specific guidance on stablecoins and cross-border crypto flows. As of 2025, stablecoins fall under the broader CASP framework, but additional guidance is expected. Monitor the SARB website for updates.
How does the FSCA CASP license compare to the UK FCA registration?
Both require fit-and-proper assessments, AML/CFT programmes, and capital adequacy. The FSCA framework is newer and still evolving. UK founders entering South Africa should engage local counsel to map differences and avoid gaps.
Need help getting CASP-licensed in South Africa? Talk to a Norebase compliance specialist →