If you offer crypto-related financial services in South Africa, the Financial Sector Conduct Authority (FSCA) has issued a request to which you are required to respond. The FSCA has issued a new information request to better understand the current crypto market, improve oversight, and protect consumers.
What is this request about?
In October 2022, the FSCA officially declared crypto assets to be “financial products” under the Financial Advisory and Intermediary Services Act, 2002 (FAIS Act). Since then, Crypto Asset Service Providers (CASPs) have operated under a transitional exemption while the regulatory framework expands. To keep regulation up to date and proportionate to risk, the FSCA is now asking CASPs to submit updated information about their activities as of 30 June 2025. The goal is to understand how the market is operating today—what services are being offered, what risks are arising, how customers are being protected, and how firms are complying with anti-money laundering and other rules. This data will inform policy, licensing oversight, and consumer protection.
Who must respond?
All CASPs that render financial services in relation to crypto assets in South Africa must complete the request. This includes firms that are:
- Fully licensed under the FAIS Act
- Operating under an exemption or transitional arrangement
- Awaiting assessment of an application
- Previously licensed but suspended, withdrawn, or lapsed if they are still rendering services under the exemption
If you provide advice, run a trading platform, offer custody/wallet services, enable on/off ramps, manage discretionary mandates, or offer payment/remittance rails using crypto, this applies to you.
What is the deadline?
Submissions must be completed online and received by the FSCA by 5 December 2025. The information should reflect your position as of 30 June 2025. Failure to provide the requested information within the timeframe constitutes an offence under the Financial Sector Regulation Act, 2017.
What information is the FSCA asking for?
The FSCA’s questionnaire is detailed but practical. It covers:
- Who you are: firm details, licensing status, locations, and whether you operate outside South Africa.
- What you do: the crypto services you provide (advice, discretionary services, exchange operations, custody, payments/remittances, on/off ramps, tokenisation, index products), your business model, and which assets you support (e.g., Bitcoin, stablecoins, NFTs, tokenised real-world assets).
- Market size and activity: average monthly transaction values, revenue by service line, customer base, and where your customers are located.
- Customers and use cases: mix of retail vs institutional clients, age groups, and the main reasons customers use crypto (e.g., investing, trading, payments, remittances, yield, hedging).
- Risk management: how you manage market, operational, cyber, liquidity, and conduct risks; how often you review controls; whether you have had incidents such as outages or breaches; your wallet infrastructure and custody model; and how you manage conflicts of interest.
- AML/CFT and Travel Rule: FIC registration, use of blockchain analytics tools, STR filings, Travel Rule implementation, challenges, and counterparties’ compliance.
- Outsourcing: which functions you outsource (e.g., KYC, custody, tech infrastructure, node operations, cybersecurity), and the related costs.
- Stablecoins: whether you list or issue them, how you verify reserves, use cases, risks and controls, and views on rand-backed stablecoins.
- Consumer protection: suitability checks, marketing disclosures, influencer usage, fee transparency, complaints statistics and handling, and top causes of complaints.
- Cross-border activity: where you operate, how you comply with exchange control, Travel Rule, and AML/CTF requirements for cross-border business.
Where to find more information
The FSCA’s information request and questionnaire are available here (under FAIS Notices > 2025). Queries can be directed to the FSCA’s Fintech Unit at Fintech@fsca.co.za