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First investment product provider to receive FSCA approval for crypto licence

02 April 2024 Jaltech

A significant development for South Africa’s financial landscape, the Financial Sector Conduct Authority (FSCA) has approved Jaltech (via its subsidiary Jaltech Digital Asset Holdings) as one of the few investment product providers to receive a crypto asset service provider (CASP) license.

The significance of this development is that it grants Jaltech the licence to offer intermediary services for its cryptocurrency investments to open doors for financial advisors and institutional and retail investors to allocate a portion of their portfolio to cryptocurrencies.

This is pivotal in integrating cryptocurrencies into the local traditional financial framework.

Gaurav Nair, a co-founder of Jaltech and head of fund management, says, “We are thrilled to be at the forefront of regulatory innovation in South Africa’s financial sector. The FSCA’s decision to grant Jaltech the CASP license reflects a recognition of the firm’s robust commitment to abide by regulatory requirements, stringent compliance standards, and commitment to investor protection.

The FSCA’s move is in line with international steps to recognise cryptocurrencies as a legitimate asset class, with regulators in the US approving a spate of Bitcoin ETFs this year, including one managed by BlackRock (the world’s largest asset manager), as well as the EU’s introduction of comprehensive legislation governing cryptocurrencies.

The FSCA’s approval has given the green light for institutional and retail acceptance and adoption of the asset class within the South African financial sector. It shows that South Africa is in step with global trends.

As cryptocurrency regulations continue to move towards the mainstream globally, more international and local investors are expected to allocate a share of their investment portfolios to cryptocurrencies.

If you are looking for a simple way of accessing the cryptocurrency market, Jaltech offers three simple investment options:

1) A diversified basket of 15 cryptocurrencies
2) Bitcoin-only
3) Ethereum-only

Jaltech manages over R2 billion customer assets and investments and offers a full suite of cryptocurrency products, including regulated Crypto-backed Securities, Custody, and Trade Execution.

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