Crypto exchange platform YellowCard, which has operations in Ghana, has obtained its first crypto license in Africa in Botswana, going on record as the first to be grant a crypto license in that country.
This comes after the firm raked in $40 million in funding just last month.
That’s better than banning it—which is what African regulators could win medals for, considering how often they have banned or restricted crypto across Africa.
In its real design, crypto is supposed to be operated separately from the traditional means of financial regulations. But while this gives users freedom and privacy in handling money, it opens the door to numerous untraceable losses through crypto scams.
Hence, regulators—the ones that aren’t pro-ban—are trying to find a balance with crypto. South Africa put out some rules last week to tighten crypto oversight. And Botswana’s Non-Bank Financial Institutions Regulatory Authority (NBFIRA) has issued its first crypto license.
The license is NBFIRA’s way of supervising non-bank financial institutions, which is what the body was established to do.
The license requires crypto operators to ensure standard anti-money laundering practices and due KYC for all customers. Also, transactions between all parties are to be recorded.
In all, the license serves as the seal of genuineness for Batswana, protecting them from the prevalent horrors of crypto scams.
