For Luno customers, this means an extra layer of protection when investing in cryptocurrency in South Africa.
While such “investments” remain volatile with values going up and crashing down dramatically, steps like this are helping bring better protection and accountability.
With millions of crypto users in South Africa, this licence means that Luno meets the standards set by the FAIS Act and now operate under the watchful eye of the FSCA. The FSCA oversees financial service providers to ensure compliance and protect consumers.
In the near future, all crypto service providers in South Africa will be required to obtain an FSP licence. This step is designed by government to enhance security in the crypto industry by elevating standards and providing better consumer protection.
‘someone can be held responsible if things fall apart due to skelmheid’
While this doesn’t make things 100% safe it shows that the people involved have taken reasonable steps to offer protection and someone can be held responsible if things fall apart due to skelmheid.
Luno says that they are determined to take the lead in regard to sticking to regulations as they roll out and providing a safe space for South African crypto users and are ‘committed to navigating these complexities to offer our customers an unparalleled crypto experience’.
When dealing with crypto it’s really important to do your homework, use trusted platforms like those with licenses from authorities like the FSCA, and be careful with your investments.