South Africa to Demand Crypto Firms be Licensed by Year-End

South Africa's Financial Sector Conduct Authority (FSCA) has received around 20 license applications for digital asset exchanges within weeks of opening the licensing process, with more expected before the November 30 deadline, according to FSCA Commissioner Unathi Kamlana.

The FSCA plans to take enforcement action against firms that continue operating without a license after the deadline, which could result in closure or fines. This ruling is moving toward to overall goal that by the end of 2023, all crypto exchanges in South Africa will be required to operate with a license.

This is the first time any African country is instituting mandatory licenses for digital asset exchanges.

Bitcoin and Sharia Law Compliance

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Sharia Law continues to be a point of discussion among Muslim African Bitcoin communities. The word Sharia stands for Islamic or sacred law. Sharia law is Islam's legal system/code of conduct, that is based the Quran, Islam's holy book. Among the primary aim of Sharia law is the achievement of justice, fairness, and mercy. Learn more about Sharia law here.​

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The topic of whether cryptocurrencies such as Bitcoin are permitted in Islam has divided Muslim academics and leaders. While some academics claim that mainstream cryptocurrencies are okay since they do not involve interest, others warn against the speculative nature of cryptocurrency trading.

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Despite this lack of agreement, cryptocurrency trading is on the increase in Muslim-majority countries, driven by causes such as economic insecurity and currency depreciation.

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This is all a matter of interpretation, and most Bitcoin proponents argue that it is a legitimate investment tool that can promote economic growth and development.

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What do we think? Well, crypto is gambling --but crypto is not Bitcoin. So Bitcoin is Sharia compliant but crypto is not.

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Before we went to print with this newsletter, huge news came out of Oman to settle the score once and for all. H.E Sheikh Mansour Bin Taleb Bin Ali Al Hinai, Chairman of Oman's Authority for Public Services Regulations, offered public support for private bitcoin mining facilities, which are set to attract a total investment of over $1.1 billion. The Oman government is taking these steps to diversify and modernize their economy as oil dominance around the world declines.

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So #Bitcoin is and always was Sharia-compliant. We hope that Muslim African countries can follow Oman's lead to modernize their economies through Bitcoin mining facilities.

Bitcoin As Legal Tender in Africa: A Look at the CAR Case

The Central African Republic's (CAR) brief experiment with adopting Bitcoin as a legal tender in 2022 came to an end within a year, revealing various reasons for its failure. This move made CAR the second nation in history to adopt Bitcoin as legal tender.

The CAR's dire economic conditions, including extreme poverty, inadequate infrastructure, and limited internet access, posed significant hurdles to the widespread adoption of digital currencies.

Scepticism around the motives, concerns raised by international organizations, and unfulfilled ambitious projects further dampened the enthusiasm for Bitcoin in the country.

Despite this setback, other African nations like Nigeria and South Africa are experiencing significant growth in Bitcoin adoption due to factors such as high inflation, tech-savvy populations, and increasing acceptance of cryptocurrencies by businesses. The CAR's experience underscores the importance of favourable environments and genuine intentions for successful Bitcoin adoption.

The Bitcoin In Africa Show is on a mission to amplify the impact of Bitcoin by spotlighting the trailblazers and pioneers steering the Bitcoin Revolution across Africa. Through engaging podcasts, the show connects with fintech visionaries, tech mavericks, influencers, and ecosystem architects, all integral to shaping Africa's Bitcoin narrative. By sharing these stories, the podcast aims to enrich your comprehension of Bitcoin's global relevance, particularly in the African context. The podcast is masterminded and hosted by Charlene Fadirepo, a former regulator turned Bitcoin Activist, bringing a unique perspective to the discourse. In the latest August 2023 episode, Charlene broadcasts from the We Make Future Conference in Rimini, Italy, a premier technology gathering in Europe. She speaks with Dominican futurist, Cairo Arevalo of Bitcoin Dominicana and the Node Society about how Bitcoin is driving financial inclusion and economic empowerment in the Carribean.

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Bitcoin Fact:

Did you know there is only a fixed amount of Bitcoin? 21 Million Bitcoin

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