Luno Among First Crypto Firms to Receive South Africa License

Through a statement released on Thursday, crypto exchange Luno announced it had obtained a license from South Africa’s financial regulatory body, making it among the initial cryptocurrency companies to be overseen by the regulatory authority in the nation.

The company announced that its financial product has been authorized under the Financial Advisory and Intermediary Services Act, 2002 (FAIS), with Luno Pty Ltd being added to the Financial Sector Conduct Authority’s (FSCA) list of approved entities.

In June 2023, South Africa’s financial regulatory body began accepting applications from cryptocurrency companies for licensing, following the passage of new laws making crypto transactions subject to regulation in the country. The Financial Sector Conduct Authority (FSCA) has warned that unauthorized firms will face significant penalties.

Around 60 firms are expected to be approved by the regulator in the short term.

“Luno’s country manager for South Africa, Christo de Wit, expressed this is a beneficial move for the cryptocurrency sector and South African residents in a statement. Since our inception, ensuring compliance, protection, and security for our clients has been a primary factor fueling our growth. Moving forward, we remain committed to enhancing our offerings with additional features and products tailored to financial institutions.”