Crypto license in South Africa
Last Update: 18.03.2026
South Africa is actively implementing blockchain technology into its financial system, rapidly becoming one of the key players in the global crypto industry. A South African crypto license is a legal requirement for anyone wishing to launch a crypto exchange or DeFi platform, offer custodial services or process payments, conduct ICOs/STOs, or lend in digital assets. Gofaizen & Sherle’s specialists will guide you through the regulatory framework for the licensing process, as well as taxation when working with virtual currencies.
From October 19, 2023, the Financial Services Conduct Authority (FSCA), based on the Financial Advisory and Intermediary Services Act No. 37 (FAIS), defined the status of cryptocurrencies as financial assets (but not official currencies). This step has led to a sharp increase in the number of multifunctional crypto ATMs (around 60), acceptance among the local population (13 million own virtual tokens/wallets, 2 million actively trade on exchanges), expanded use in everyday life (payment for groceries at Pick n Pay supermarkets, goods at online retailer Takealot, medicines at Dischem pharmacies, etc.), and the emergence of crypto exchanges and various platforms (75 exchanges have already been licensed: Luno, Coinbase, By Bit, etc., and another 374 are awaiting a decision). At the same time, the FSCA monitors crypto providers and their compliance with AML/CFT, and strictly punishes those who engage in illegal activities (fines of up to ZAR 1 million, restriction of access to the financial market, closure of accounts).
Benefits of Being a Licensed Crypto Business in South Africa
Obtaining an FSCA crypto license for your business opens up several long-term, market, and operational advantages, such as:
Legal protection and expansion of your customer base.
An FSCA license allows you to operate in any region of South Africa (by 2030, the number of users is expected to grow to 43%, with 13.9 million already owning virtual coins and 15.7% actively using them for purchases and payment for services). For customers, licensed activity means data protection during payments and regulatory oversight.
Simplification of the investment attraction process.
Licensed providers inspire confidence among institutional investors and a desire to cooperate in a regulated environment. There are several venture capital funds in South Africa investing in fintech startups, such as Newtown Partners, Montegray Capital, Bittrex Global, and others. The South African Reserve Bank (SARB) is testing the possibility of launching a CBDC. At the state level, a strategy has been adopted – South Africa’s Digital Economy – aimed at using blockchain in the public sector.
Transparency of operations and a long-term marketing development plan.
The regulator requires all financial market participants to comply with FATF standards, which significantly enhances their international reputation. With official authorization, companies can plan for long-term development, develop marketing strategies, gain the trust of new users, and expand their range of services/products.
Ability to use local banking services.
Banks such as FNB and Capitec offer integration with crypto platforms and the ability to trade over 400 cryptocurrencies, place deposits, and use other services. The Stitch payment system for businesses simplifies the acceptance of payments in digital currencies.
Legal Considerations
Licensing of crypto activities is carried out by the Financial Services Conduct Authority (FSCA). The Financial Intelligence Centre (FIC) was established to monitor AML/CFT compliance, while legal entity registration and annual reporting are carried out by the Companies and Intellectual Property Commission (CIPC). The South African Reserve Bank (SARB) develops policies and procedures for transfers and is testing the feasibility of creating a CBDC.
The South African regulations are based on:
- Financial Advisory and Intermediary Services Act No. 37 (FAIS) classifies cryptocurrencies and the need to obtain an FSP.
- Directive 9 was introduced to ensure compliance with the rules.
- The CASP guidelines describe the activities that are subject to licensing.
- The tax regulations on crypto assets specify which taxes apply to transactions with virtual tokens.
FSCA Crypto License Requirements
After the FSCA officially defined the status of cryptocurrencies in 2022, all brokers, exchanges, services, and providers involved in financial services involving cryptocurrencies must obtain an FSP license and comply with a number of compliance and IT structure requirements.
The main crypto license requirements in South Africa include:
Registration of a profitable organization.
According to the law, only commercial companies have access to the license: private (Pty Ltd) and public companies (Ltd). Depending on the type of company, a certain number of founders are required (for private companies, 1; for public companies, 3). Registration takes place at the CIPC within 1-3 days.
Obtaining an FSP with a sub-item for crypto asset products.
Financial services such as trading, exchange, storage, issuance, and distribution of financial tokens are subject to licensing by the FSCA. The review process takes 6 to 12 months. The main criteria are honesty in conducting business activities and the reliability of the company, as specified in (Fit & Proper Requirements, Board Notice 194, 80).
Registration with the FIC.
The Financial Intelligence Centre (FIC) monitors the company’s activities, AML/CFT compliance, transaction monitoring, risk management, and reporting.
Prove financial stability.
There is no minimum capital requirement in the legislation, but when applying, the company must demonstrate sufficient financial liquidity, have insurance reserves, and a plan to cover expenses and risks.
Comply with FATF recommendations.
Financial market participants are required to comply with all AML/CFT procedures and appoint an AML manager to liaise with the FIC.
Legal address.
The regulator requires companies to have a physical office for storing documents and undergoing audits and inspections.
Comply with data protection and cybersecurity regulations.
The company is required to provide customers with a secure IT infrastructure that uses data encryption protocols, multi-factor authentication, backup, and confidentiality standards for customer data.
Find more information about South Africa crypto license
How to Get a Crypto License in South Africa
Cryptocurrency business in South Africa is regulated by the FSCA, which means close cooperation with the Regulator during all stages of obtaining an FSP:
Step 1: Registration of the legal form.
The creation of a legal entity (Pty, Ltd) is carried out through the online portal of the Companies and Intellectual Property Commission (CIPC) and takes up to 3 days.
Step 2: Selection of key managers.
Managers and AML managers must pass a fit & proper test, have work experience, and prove their business reputation and competence.
Step 3: Set up a local office.
One of the conditions is the availability of a physical office (not a virtual mailbox) where documents will be stored and checks will be carried out.
Step 4: Prepare a description of the implementation of AML/CFT mechanisms.
The regulator must ensure that companies comply with financial transparency rules, international FATF standards, transaction monitoring and fraud detection, reporting, and timely submission of reports.
Step 5: Registration with the FIC.
The FIC monitors the company’s activities and compliance with anti-money laundering legislation.
Step 6: Submission of an application to the FSCA.
The FSCA application must be accompanied by a complete set of documents consisting of:
- The company’s founding documents.
- Personal data of key managers with confirmation of their place of residence.
- Minutes of the appointment of managers and the AML manager.
- Detailed business plan.
- Implemented AML/CFT policies.
- Description of IT infrastructure, data protection measures, encryption protocols used, etc.
- Proof of financial stability.
The FSCA interviews senior managers, assesses the completeness of the data and documentation, evaluates financial monitoring mechanisms, and assesses the level of customer data protection.
The application approval process can take up to six months. Companies then submit annual financial reports to the CIPC and confirm their financial stability to the FSCA.
Taxation of Crypto Assets
The South African Revenue Service (SARS) treats cryptocurrencies as intangible assets, which means that normal taxation rules apply:
- 27% income tax.
- 18% on purchase/sale transactions.
- 27%*80% – capital gains tax (80% of capital gains are taxed at 27%).
- 27% on income from mining and staking.
A special department has been set up within SARS – the Crypto Asset Unit – to monitor all blockchain company transactions.
Conclusion
By choosing to legalize crypto activities, define their clear status, and introduce financial regulatory mechanisms, South Africa has created optimal conditions for the development of the local market and the attraction of investors.
Obtaining an FSP is confirmation of transparency, compliance with international security standards, and protection of investor rights. Crypto providers gain access to a dynamic market where a huge number of users use tokenized assets not only for investment but also in everyday life to pay for goods.
FAQ about South Africa crypto license
Who is required to obtain an FSP?
The FSCA crypto license is issued to legal entities offering services related to digital assets (trading, exchange, payments, storage, ICO/STO).
Is it necessary to comply with AML/CFT procedures?
Yes, this is one of the key requirements for a company to operate legally in this jurisdiction.
How long does it take to obtain approval from the FSCA?
The regulator needs 6 to 12 months to fully review the application, interview key managers, and confirm the company’s financial stability.
Is there a tax on crypto transactions in South Africa?
Yes, the company’s profits from cryptocurrency transactions are subject to income tax and capital gains tax.
Explore other Crypto Licences
Connect with our experts
Our experts will tell you how to do it as quickly and easily as possible.
By clicking the button, I confirm that I have read the privacy policy and consent to the collection and processing of my personal data in accordance with the GDPR rules.