Yellow Card, a company specializing in stablecoin infrastructure across Africa, has achieved a significant milestone by securing a Crypto Asset Service Provider (CASP) licence in South Africa. This follows the company’s successful fundraising of $33 million in October and marks an important step in its growth across the continent. South Africa is progressively easing its stance on cryptocurrency regulation, with over 138 companies now licensed to operate within its crypto ecosystem.
With this new authorisation, Yellow Card South Africa is officially recognised as a financial services provider (FSP) in the country. While the current licence focuses on crypto assets, it is flexible enough to be expanded to cover a range of other financial products, including stocks and tokenized securities.
Having launched its operations in South Africa in 2020, Yellow Card currently serves 20 countries across the continent, enabling users to send money using stablecoins. The company claims to have processed over $3 billion in transactions since it was founded in 2016.
Yellow Card expressed excitement about the potential of this new licence in South Africa, highlighting opportunities not only within the country but also across the Southern African Development Community (SADC) and the wider continent.
South African regulators began issuing licenses for various crypto-related services, such as advisory services, exchanges, payment systems, and wallets, as the crypto sector processed $26 billion in transactions from June 2023 to June 2024. These regulatory measures aim to provide oversight, promote tax collection on crypto returns, and curb risks associated with money laundering and terrorist financing.
However, while the Financial Sector Conduct Authority (FSCA) oversees the licensing of Crypto Asset Service Providers (CASPs), it does not recognise crypto assets as legal tender. Additionally, the South African Reserve Bank does not classify crypto assets as currency.
The country’s initial steps towards regulating crypto began in November 2018 when the South African Reserve Bank (SARB) formed the Crypto Assets Regulatory Working Group with other key financial bodies. This was followed by the FSCA’s declaration in October 2022, recognizing crypto assets as financial products, which allowed licensing applications to open in June 2023.
Yellow Card has also confirmed that it is in discussions with Nigeria’s Securities and Exchange Commission regarding a crypto licence under the Accelerated Regulatory Incubation Programme (ARIP). The company has already submitted its application and is waiting for approval.
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