Pan-African crypto firm Yellow Card has received a significant boost to its operations in South Africa. The company has been granted a Crypto Asset Service Provider (CASP) license by the country’s financial regulator.
South Africa’s Crypto Regulatory Evolution
The announcement follows South Africa’s push towards a regulated crypto ecosystem, which has seen over 138 companies licensed in 2024 alone. The South African crypto renaissance began as early as 2018, when the Crypto Assets Regulatory Working Group was established. This collaboration among key institutions like the South African Reserve Bank (SARB) and the Financial Sector Conduct Authority (FSCA) laid the foundation for oversight in this emerging sector.
A major milestone was reached in 2022 when the FSCA classified crypto assets as financial products, paving the way for licensing applications by mid-2023. Within a year, South Africa’s crypto industry had processed $26 billion in transactions, prompting regulatory measures to reduce risks associated with money laundering and terrorist financing.
Speaking on this achievement, the company noted in a statement: “The scope of the authorisation encompasses crypto assets, but it can be easily expanded to include various other financial assets, including stocks and tokenized securities.”
Leader in African Crypto Infrastructure
Founded in 2016, Yellow Card has made significant strides across the continent. Its innovative use of stablecoins allows users to seamlessly send money across borders, addressing many of Africa’s remittance challenges. The company already operates in 20 African countries and has facilitated over $3 billion in transactions since its inception in 2016.
With this new license, Yellow Card is well-positioned to further expand its services in South Africa and across the broader African continent. “We look forward to building on our license stack in South Africa and exploring how that will enable further opportunities,” a spokesperson for Yellow Card said.
The company’s focus on stablecoins and cross-border payments aligns with the growing demand for efficient and affordable financial solutions in Africa. By leveraging blockchain technology, Yellow Card wants to empower individuals and businesses across the continent.
While South Africa has made significant strides in regulating the crypto industry, it’s important to note that crypto assets are not yet recognized as legal tender. The South African Reserve Bank continues to maintain a cautious stance on cryptocurrencies. Crypto assets are still not recognised as legal tender by the South African Reserve Bank, nor classified as “cryptocurrency” in the conventional sense.
Expansion Beyond South Africa
Yellow Card also has its sights set on other markets. The company has initiated discussions with Nigeria’s Securities and Exchange Commission (SEC), applying for a licence under the Accelerated Regulatory Incubation Programme (ARIP).
“We submitted our ARIP application to the SEC several months ago and are awaiting the SEC’s approval in principle,” The company confirmed. As Yellow Card continues to expand its operations and secure regulatory approvals, it will be interesting to see how the company shapes the future of digital finance in Africa.
