AltCoinTrader CEO Richard de Sousa.

AltCoinTrader, a South African crypto asset service provider (CASP), has received both category one and category two licences from the Financial Sector Conduct Authority (FSCA).

The company announced the development yesterday. It said that obtaining an FSCA licence indicates that firms such as AltCoinTrader have met the authority's stringent requirements for CASPs.

This announcement comes as Bitcoin hovers at all-time high levels and there is increased interest in digital assets in South Africa, and globally.

According to AltCoinTrader, the Financial Action Task Force's greylisting of South Africa last year has put pressure on the country’s authorities to hasten crypto asset regulation, often ahead of their worldwide counterparts.

Richard de Sousa, founder of AltCoinTrader, said: “The licensing of CASPs is a positive development for the South African crypto industry. It provides regulatory clarity for both businesses and consumers, fostering greater trust and participation in the market. This could lead to a wider adoption of cryptocurrencies in South Africa, opening up new investment opportunities and avenues for financial inclusion.”

He added: “While licensing is a significant step, South Africa still has some way to go in terms of comprehensive crypto regulation and we expect the FSCA to continue developing a regulatory framework that balances innovation with financial stability and consumer protection.”

AltCoinTrade stated that the licencing of CASPs is a good sign for the future of cryptocurrency trading in South Africa.

De Sousa said: “We are excited to lead the charge toward a more inclusive, accessible, and transparent financial future.”