REGULATION | African Stablecoin On/Off Ramp, Yellow Card, Secures Category 1 Crypto Asset Service Provider Licence in South Africa

Yellow Card, a leading provider of stablecoin-based infrastructure in Africa, has been granted a Category I Crypto Asset Service Provider (CASP) license by the Financial Sector Conduct Authority (FSCA) in South Africa.

A CAT I license is the standard financial service provider license required for a CASP in South Africa to provide advice or exchange services to its customers.

Chris Maurice, co-founder and CEO of Yellow Card, commented on the FSCA’s decision, saying,

“The CASP licence underscores Yellow Card’s commitment to its customers in South Africa and regulatory compliance across the continent.

This achievement reflects our dedication to providing secure, compliant and transformative solutions for our customers both in South Africa and across Africa.”

Stablecoin adoption is rapidly increasing across Africa, with sub-Saharan Africa leading the world at a 9.2% adoption rate.

In South Africa, where there are an estimated 5.8 million crypto asset users, stablecoins have grown by 50% month-over-month since October 2023, surpassing Bitcoin as the country’s most popular cryptocurrency.

Yellow Card is excited to be a key player in this financial transformation in South Africa.

Launched in South Africa in 2020, Yellow Card has processed over $3 billion in transactions and now operates in 20 countries across the continent.

The company recently secured $33 million in Series C funding, led by:

• Blockchain Capital

along with,

• Polychain Capital
• Valar Ventures
• Third Prime Ventures
• Coinbase Ventures, and
• Block, Inc. (Square/Cash App)

which demonstrates strong investor confidence in its mission.

As the stablecoin ecosystem evolves, Yellow Card remains committed to expanding access to secure digital assets for businesses across Africa. With its new licensing and funding, the company plans to enhance its infrastructure, expand its B2B offerings, and improve its stablecoin technology to help businesses optimize liquidity management and operations.

Starting in April 2024, the Financial Sector Conduct Authority (FSCA) began granting CASP licenses, starting with 75 institutions, marking South Africa’s inaugural batch of licensed crypto asset service providers.

As reported by BitKE at the time, FCSA announced:

“374 licence applications have been received to date. The FSCA will continue to provide regular updates as these applications are processed and approved.”

The FSCA however emphasized its stance that it does not consider any crypto asset as currency:

“The public is reminded that the FSCA’s licensing powers are limited to the authorisation and supervision of CASPs only insofar as they render financial services related to crypto assets,” it said.

“This authorisation does not include the recognition of crypto assets as legal tender or ‘cryptocurrency,” the FSCA added.

Any media reports implying otherwise are therefore incorrect as the South African Reserve Bank does not currently recognise crypto assets as currency.”