Yellow Card, a company that focuses on stablecoin infrastructure in Africa, has recently obtained a Crypto Asset Service Provider (CASP) license in South Africa, marking a significant milestone in its expansion within the region. South Africa has been easing its regulatory stance on cryptocurrency, with numerous companies now licensed to operate within the country’s regulated crypto ecosystem.
Yellow Card, present in South Africa since 2020 and operating in 20 African nations, allows users to utilize stablecoins for cross-border money transfers across these countries. The company has processed over $3 billion in transactions since its establishment in 2016.
Regulators in South Africa started granting licenses to providers of various crypto services to oversee the country’s growing crypto industry, which recorded transactions worth $26 billion between June 2023 and June 2024. This regulatory framework aims to tax crypto returns, mitigate risks associated with money laundering, and combat terrorist financing.
Although the Financial Sector Conduct Authority (FSCA) oversees Crypto Asset Service Providers (CASPs) within the financial services involving crypto assets, it does not consider crypto assets as legal tender or cryptocurrency. Additionally, the South African Reserve Bank does not currently recognize crypto assets as currency.
The process of liberalizing South Africa’s crypto regulatory environment commenced in November 2018 when the Crypto Assets Regulatory Working Group was established by the South African Reserve Bank (SARB) in collaboration with other regulatory bodies. In October 2022, the FSCA categorized crypto assets as financial products, opening the door for license applications and the acceptance of crypto in South Africa.
Yellow Card is also in discussions with Nigeria’s Securities and Exchange Commission for a crypto license under the Accelerated Regulatory Incubation Programme (ARIP). The company has submitted its application and is awaiting approval in principle.
Please note that this article has been updated with a statement from Yellow Card.