According bloomberg, South Africa has mandated that all cryptocurrency exchanges operating within its borders must obtain licenses before the end of the year. The Financial Sector Conduct Authority (FSCA), the country’s financial regulator, has already received approximately 20 applications since the licensing process began a few weeks ago.

FSCA Commissioner Unathi Kamlana has warned that the regulator will take enforcement action against companies that continue to operate without a license beyond the November 30 deadline. This could result in the closure or fines of these businesses. Kamlana explained that the regulatory framework was introduced because of the potential harm that financial clients could face when using crypto products.

South Africa, Africa’s most developed economy, is the first country on the continent to require digital asset exchanges to obtain licences. This move affects several major commercial centers that originated in South Africa, including Moon, owned by Digital Currency Group, and Pantera-backed VALR. Global platforms like Binance operating in the country will also need to obtain licences.

The trend of tightening regulations is not just limited to South Africa. Yesterday, the Monetary Authority of Singapore (MAS) announced that crypto service providers in Singapore are required to place customer assets in a statutory trust before the end of the year for safe storage. This action underscores a global shift towards stricter regulation in the cryptocurrency sector.