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An executive ad Luno had said that about 73 applicants who are seeking a license to offer crypto products in South Africa are already registered as accountable institutions with the Financial Intelligence Centre. 

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According to the Luno executive, this may be an indication that regulated financial institutions are planning to add crypto to their product offerings.

Few Non-Licensed Financial Service Providers Have Applied

According to Tarris Arnold, the business development manager at the crypto exchange Luno, a majority of the entities that have applied for licenses to offer crypto-related products are financial institutions. 

This, according to Arnold, may be an indication that many regulated financial institutions plan to add crypto to their offerings.

Remember that DiutoCoinNews previously reported that the regulator in South Africa has given until December 2023 for crypto exchanges to get a license.

According to Techcentral, Arnold said only a few of the license applications received by the country’s financial sector watchdog, the Financial Sector Conduct Authority (FSCA), were submitted by non-licensed financial services providers.

The Luno executive has now revealed that 73 of these applicants are already registered as accountable institutions with South Africa’s Financial Intelligence Centre.

“Even financial services companies that don’t buy into the fundamental value of crypto or its other use cases see value in the volatility associated with crypto assets. Volatility is beneficial as it often equates to greater profit margins. In addition, crypto is a non-correlating asset class and thus provides some mitigation for investments in traditional markets.” said Arnold

Meanwhile, it’s notable to see the green light with regulation. More in-flow of funds from institutional investors. We have seen the recent trend of crypto bonds and securities trading being prioritised on the bitcoin side chain ‘liquid Network’.

About The Author

By Tony Chimdiuto

Diutocoinnews Admin. Send all publications to info@diutocoinnews.com.ng

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