Yellow Card, a pioneering company in Africa’s stablecoin sector, has achieved a major breakthrough by securing a Crypto Asset Service Provider (CASP) licence in South Africa. According to TechCabal, this move signifies an essential step in Yellow Card’s regional growth as South Africa continues to loosen its grip on cryptocurrency regulations in 2024. Over 138 businesses now operate within the country’s regulated crypto framework.
“Yellow Card South Africa is now an authorised financial services provider (FSP) in South Africa. While our licence covers crypto assets, it also positions us to expand into other areas such as tokenised securities and stocks,” the company told TechCabal.
Since its South African debut in 2020, Yellow Card has expanded its services to 20 countries across Africa, leveraging stablecoins to simplify cross-border transactions. With a staggering $3 billion processed since its establishment in 2016, the company remains at the forefront of Africa’s crypto revolution.
“We are eager to strengthen our regulatory foundations in South Africa and the SADC region, as well as unlock more opportunities across the continent,” Yellow Card stated.
South Africa’s regulatory reforms began in earnest in 2023, with the Financial Sector Conduct Authority (FSCA) licensing crypto advisory services, exchanges, wallets, and payment gateways. During the period between June 2023 and June 2024 alone, the country’s crypto industry recorded an impressive $26 billion in transactions.
These frameworks allow the South African government to levy taxes on crypto earnings and mitigate risks related to illicit activities like money laundering. However, the FSCA’s role is limited to regulating financial services involving crypto, not recognising it as legal tender. Likewise, the South African Reserve Bank currently does not classify crypto as an official currency.
South Africa’s journey toward crypto regulation began in November 2018 with the formation of the Crypto Assets Regulatory Working Group. By October 2022, the FSCA designated crypto assets as financial products, laying the groundwork for the licencing process launched in mid-2023.
In parallel, Yellow Card is advancing its regulatory ambitions in Nigeria, where it has applied for a licence under the SEC’s Accelerated Regulatory Incubation Programme (ARIP). “We filed our ARIP application with the SEC several months ago and are awaiting approval,” the company shared.
