Crypto licence in South Africa: the FSCA route
- APPLIED
- 533
- APPROVED
- 310
- MINIMUM CAPITAL
- None
In short. South Africa asks a crypto firm for no share capital. It asks instead whether the people running it are fit and proper, and it turns firms down often enough to be worth planning for. By 31 March 2026 the FSCA had taken 533 applications for a crypto asset service provider licence, approved 310 and declined 17. Another 124 firms withdrew once the regulator had looked at what they did.
- APPLICATIONS RECEIVED
- 533since 1 June 2023, as at 31 March 2026
- APPROVED
- 310licensed crypto asset service providers
- DECLINED
- 17refused outright by the regulator
- WITHDRAWN
- 124pulled after the FSCA questioned the model
- MINIMUM CAPITAL
- Nonesolvency and liquidity tested instead
- LIQUID ASSETS
- 4/52of annual expenditure, category I
- THE LAW
- FAIS 2002crypto became a financial product in 2022
How crypto became a licensed activity
The FSCA declared crypto assets a financial product on 19 October 2022, in General Notice 1350 in Government Gazette 47334. That put crypto inside the law South Africa already had for financial advice and intermediary services, the FAIS Act of 2002.
The choice explains most of what follows. A crypto firm applies for a financial services provider licence, and crypto asset services are one of the things that licence covers.
Firms already trading had to file between 1 June and 30 November 2023. A firm starting now applies before it takes its first client, the way any other financial services provider does.
What replaces a capital requirement
South Africa sets no minimum share capital, which makes it one of the cheapest regimes to enter on paper and one of the more awkward to pass. The FSCA measures financial soundness instead of holding a deposit: assets above liabilities, current assets above current liabilities, and liquid assets of at least four fifty-seconds of annual expenditure for a category I provider.
Board Notice 194 of 2017 sets the fit and proper standards, and the FSCA tests every key individual against them on honesty and integrity, competence, operational ability and financial soundness. The people carry more weight here than the balance sheet does.
Of 533 applications to 31 March 2026, the FSCA approved 310 and refused 17. A further 124 firms withdrew after the regulator asked about their business model, close to one applicant in four.
What else attaches to the licence
A licensed firm is also an accountable institution. Crypto asset service providers went into Schedule 1 of the Financial Intelligence Centre Act on 29 November 2022, in force from 19 December, which brings customer due diligence, record keeping and reporting obligations.
Transfers carry the travel rule. The FSCA issued Directive 9 on 13 December 2024 and it took effect on 30 April 2025. The originator's and the beneficiary's details must now travel with the transaction.
The application fee covers neither obligation.
What the licence costs
The FSCA sets no capital requirement and publishes its fees in annual notices rather than fixing them in the licence. Check any figure from a sales brochure against the current notice before you budget on it.
The spending goes on key individuals who meet the standards, a compliance function, audited financials, and the weeks it takes to answer the regulator's questions about your model. The 124 firms that withdrew ran into that bill.
How an application runs
- 1Check that you need the licence. It covers advice on crypto assets and intermediary services in them, which catches exchanges, brokers and most platforms serving South African clients.
- 2Pick the category. Most crypto firms apply as a category I financial services provider. Managing client assets on your own discretion moves you up a category.
- 3Put the key individuals in place. Each must satisfy the fit and proper standards in Board Notice 194 of 2017 on honesty, competence and experience.
- 4Prove financial soundness. Assets must exceed liabilities, current assets must exceed current liabilities, and a category I provider holds liquid assets worth at least four fifty-seconds of yearly expenditure.
- 5Register with the Financial Intelligence Centre. A crypto asset service provider is an accountable institution and owes customer due diligence and reporting.
- 6File with the FSCA and expect questions. A quarter of applicants so far have walked away rather than answer them.
- 7Comply with the travel rule from day one. Directive 9 has required originator and beneficiary data on transfers since 30 April 2025.
Timeline
The FSCA declares crypto assets a financial product in General Notice 1350.
Crypto asset service providers go into Schedule 1 of the Financial Intelligence Centre Act, in force 19 December.
The FSCA opens the licence application window.
The window closes for firms that were already operating.
Directive 9 brings in the travel rule, in force from 30 April 2025.
533 applications in, 310 approved, 17 declined, 124 withdrawn.
Questions
Is there a separate crypto licence?
No. Crypto is a financial product under the FAIS Act, so a firm applies for a financial services provider licence covering crypto asset services.
How much capital do I need?
None as a fixed amount. You need assets above liabilities and liquid assets worth at least four fifty-seconds of annual expenditure as a category I provider.
What are the odds?
Of 533 applications to 31 March 2026, 310 were approved and 17 refused. A further 124 were withdrawn by the applicants themselves.
Did the window close in 2023?
It closed for firms already operating. A new firm applies before it starts trading.
Does the travel rule apply?
Yes, since 30 April 2025, under Directive 9.
Where do I check a licensed firm?
The FSCA publishes the list of licensed crypto asset service providers on its own site.
Sources
Updated 09.10.2026 · this is reference material, not legal advice