South africa

VASP

South Africa: VASP / Crypto License

Obtaining a Virtual Asset Service Provider (VASP) License in South Africa provides businesses with the regulatory framework to offer a variety of digital asset services securely. Licensed entities can engage in activities such as cryptocurrency exchanges, digital wallets, and token issuance while adhering to stringent anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. This compliance builds trust with customers and partners, positioning VASP-licensed businesses as credible and secure players in the competitive crypto market.


In addition to the VASP license, the FSCA Category 1 license for intermediary services allows businesses to offer advisory and intermediary services in the financial sector, including crypto-related products. This dual licensing ensures that companies can provide a full suite of financial and digital asset services, enhancing their value proposition to clients. The FSCA’s regulatory oversight offers an additional layer of credibility and ensures compliance with South Africa’s financial laws, providing a competitive edge in a rapidly evolving industry.


One of the key advantages of operating under these licenses is the ability to cater to South Africa’s growing demand for secure and regulated crypto services. With increasing interest in digital currencies for investment and everyday transactions, licensed entities can offer tailored solutions that meet the diverse needs of individuals and institutions. This dual licensing also enables businesses to operate as trusted intermediaries, bridging the gap between traditional financial services and the emerging crypto economy.


Furthermore, South Africa’s role as a financial hub in Africa offers licensed companies the opportunity to expand their reach across the continent. By combining the strengths of a VASP license with the FSCA Category 1 license, businesses can position themselves at the forefront of the digital finance revolution, delivering innovative services while ensuring compliance and security. This strategic positioning not only drives growth but also contributes to the broader goal of financial inclusion in the region.



Crypto Authorization with Category 1 License allows for:



  • Staking Cryptocurrencies: Assisting clients in earning rewards through staking processes.
  • Investment Advice: Providing guidance
  • Crypto Brokerages: Offering intermediary trading opportunities.
  • Real Estate Investment: Guiding clients on real estate investment opportunities into crypto in Africa
  • Any intermediary services: Can use other exchanges and technology to provide crypto services to clients in Africa

Ready-Made LTD (PTY) as a Juristic Representative under a main VASP License:  50.000 EUR

  • 100% ownership & shares of the company.
  • FSCA Category 1 Juristic Representative License approved for crypto intermediary services. This is a Juristic Representative of a Main VASP License. There are no differences of services rendered between a Main License and Juristic Representative. This Juristic Representative company is fully authorized and trades independently by itself. Only the authorization of the financial services is supervised/granted by the Main License.
  • Customized implementation plan development.
  • Immediate capability to commence operations.
  • Full compliance with the Financial Sector Conduct Authority (FSCA) requirements, ensuring the operational legitimacy of your crypto-assets service.
  • Complete bank account setup and ownership transfer.

*Local bank account is through First National Bank (Gold Business Bank Account). Supports cryptocurrency investment through platforms regulated by the South African Reserve Bank (SARB). Crypto companies and users in South Africa also use crypto wallets to make crypto transactions.


*Time line : Transfer of shares take between 3-5 working days after all documentation and payments are received and reviewed.



Required monthly operational support package: 6.700 EUR with a 12 month minimum contract and due at the 1st of every month.

Includes:

  • A local director, to oversee company functions.
  • We provide experienced and qualified individuals to serve as local CEOs or directors for your company, ensuring effective leadership and management.
  • A compliance officer, as mandated by the FSCA.
  • Our compliance officers ensure that your company adheres to all regulatory requirements, minimizing the risk of any non-compliance issues.
  • A local key individual on the license, fulfilling FSCA requirements.
  • Our local key individual meets the regulatory requirement of having an authorized person responsible for compliance and risk management.
  • A local accountant to ensure adherence to financial regulations.
  • We offer the services of local accountants who are well-versed in South African financial regulations and can handle your company's accounting needs only to comply with the yearly audits as per FSCA (regulatory body) requirements. Please note day to day transactions are not included, but can be charged by hour if needed.
  • Facilitating the buying and selling of cryptocurrencies directly from fiat currency.
  • Facilitating = brokerage or broker. Meaning we are the brokerage that makes sure the buying and/or selling of the P2P services happens in an orderly manner. You, as a client, can then ask a fee (brokerage fee) for this service.


In the case another VASP/CASP causes any upset on the Main License, we provide an alternative license and shift the companies over seamlessly, and this all included within the monthly fees.


We provide comprehensive support across three critical areas: Regulatory Compliance and FSCA Licensing, Operational Setup, and Ongoing Market Presence Management.


We understand the complexities of entering a new market, and our team is dedicated to providing you with:

  • End-to-end project management
  • Transparent communication
  • Regulatory compliance assurance
  • Operational excellence support



Not included in the Category 1 license (however simple solutions are available):

Operating Cryptocurrency Exchanges: Facilitating the buying and selling of cryptocurrencies directly from fiat currency.

*Exchange is considered as a bank in South Africa, and we advise against it as this is highly regulated and needs significantly more staff and compliance. We use one of the existing exchanges to divert risk and use their technology to interact/integrate our crypto platform, and this service is included in the monthly operational support package.



FAQs


With this CAT 1 VASP we can’t use FIAT to exchange? We will need another partner who can do this?

We are able to use a partner's technology to integrate the crypto platform. This partnership maintenance is included in the monthly operational costs. The only extra cost for this option would be based on monthly inflow.

Or

If you are registered from/on any exchange and convert fiat over to crypto, then, you can move this crypto over to the SA VASP.

You can onboard clients on your current VASP and shift crypto-assets to the SA VASP as well.


P2P is allowed with this VASP license in SA?

Yes P2P is allowed for a VASP in South Africa, as long as you have your own help desk and operators.


We use Binance P2P market And we have our own operators. Will we be able to find a bank account that will support our business?

Complete bank account setup and ownership transfer. Local bank account is through First National Bank. Supports cryptocurrency investment through platforms regulated by the South African Reserve Bank (SARB). If the payments in ZAR there is no issue or delay. 

For international payments, there is a SWIFT code for First National Bank (FNB) in South Africa. You can use this code to receive international payments to your FNB account. This will go through the South Africa Reserve Bank.

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