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Mariblock Weekly

Jul 9, 2024 at 10:01 AM Updated: Jul 9, 2024 at 12:48 PM 5 min read

Plus: South Africa grants 63 new crypto licenses FSCA chief outlines principles-based regulation CBN official testifies against Binance Fuse Network launches $10K summer hackathon

Oluwaseun here, the lead editor here at Mariblock.

Welcome to Mariblock Weekly, where we bring you the most important developments in the African blockchain scene over the past week.

I think we can safely call this edition of MB Weekly the South African edition. Quite frankly, no other country on the continent produces high signal blockchain and crypto headlines as much as South Africa.

Well, theres the continuation of the Nigeria vs. Binance legal battle, which continues to see Binance staffer Tigran Gambarya lock up.

In a way, the two stories are similar in that theyre becoming a case study of how and how not to regulate a nascent market. For South Africa, a progressive regulatory stance is attracting builders and investments. In Nigeria, builders are fleeing, and so are the investments that builders attract.

Lets get to it!

Stay up-to-date with the latest blockchain developments in Africa

Topline: The Financial Sector Conduct Authority (FSCA) ofSouth Africahas significantly expanded its roster of licensed crypto asset service providers (CASPs), approving 63 new applications in the second quarter of 2024. (Details)

The details: As of June 30, 2024, the total number of licensed CASPs in South Africa was 138, up from 75 in April 2024, FSCA said in a July 2press release.

Oluwaseunsthoughtbubble: As I wrote on LinkedIn, the most notable part of the new licenses for me is that Kotani Pay originally founded in Kenya by Kenyans is now licensed in South Africa.

Switching gears: The FSCA isnt just expanding the number of licensed CASPs; its also ramping up enforcement of its regulations.

Topline: The Financial Sector Conduct Authoritys (FSCA) commissioner, Unathi Kamlana, delivered a wide-ranging public lecture at North-West University on June 26, 2024, addressing South Africas approach to striking a balance between fostering innovation in the financial sector and maintaining effective regulatory oversight. (Details)

Telling quote: The future demands that as regulators we should be both proactive and adaptive, continuously evolving our approaches to keep pace with technological advancements, Kamlana said. This will involve embracing new regulatory frameworks, leveraging advanced technologies for oversight, and maintaining a flexible mindset to accommodate the rapid changes in the sector.

The details: In a move to match words with action, Kamlana said the FSCA is shifting towards a principles-based regulatory approach.

Of note: The FSCAs regulation places significant oversight responsibilities on key individuals, which include top executives.

Topline:A Central Bank of Nigeria (CBN) official has testified that Nigerian users of Binance conduct transactions using pseudonyms, potentially complicating the ongoing legal case against the cryptocurrency exchange. (Details)

The details: Olubukola Akinwumi, deputy director at the CBN, testified before the Federal High Court in Abuja on July 5, 2024.

Oluwaseuns thought bubble:The stark contrast between Nigeria and South Africas approaches to crypto regulation is becoming increasingly significant, with the effects growing more apparent by the day.

Crypto exchange KuCoin imposes 7.5% VAT on transaction fees for Nigerian users (Mariblock)

South Africa announces 30 investigations into crypto activities (Mariblock)

Binance vs Nigeria: A timeline of events as they unfold (Mariblock)

Worldcoin to resume operations as Kenyan police drop investigations (Mariblock)

Nigeria to launch AI and Blockchain research hub nationwide (Mariblock)

Nigeria's SEC announces regulatory sandbox for crypto firms (Mariblock)

Fuse Network is hosting its summer 2024 hackathon from July 15th to August 4th, with a $10,000 prize pool. (Details )

Thats it for this week.

See you next week.

Cheers,

Oluwaseun.

Original post:

South Africa's message to the rest of Africa - Mariblock