The Financial Sector Conduct Authority (FSCA) declared crypto assets to be financial products with immediate effect from 19 October 2022.
Anyone that provides financial services related to crypto assets will need to be appropriately licensed as a Financial Services Provider (FSP) and must apply to the FSCA for an FSP licence between 1 June 2023 and 30 November 2023.
Masthead has been assisting FSPs with FSP licence applications for many years. We are familiar with how the FSCA operates, their licensing process and the documents they require. We will make the licensing process smoother and quicker by assisting with the application forms, compiling of the supporting documents and the submission of the application.
We can assist you with applying for an FSP licence. To find out more get in touch with us today by sending us a message or giving your closest Masthead Office a call.
Can you continue to operate as a crypto assets provider while waiting for your FSP licence?
Yes, a general exemption notice has been published which protects those who are already providing financial services related to crypto assets, until their FSP licence applications have been finalised (either approved or declined) by the FSCA. This means that you may continue to provide financial services in respect of crypto assets while your licence application is being processed. If you do not submit a licence application between 1 June 2023 and 30 November 2023, then the exemption will lapse, and you will not be protected.
Crypto asset providers are required to immediately comply with:
This requires crypto asset providers to immediately act with honesty, integrity and be in good standing, and to render financial services honestly, fairly, with due skill, care and diligence, and in the interests of clients and the integrity of the financial services industry.
Crypto asset providers will need to comply with the FAIS Act, the General Code of Conduct and Fit and Proper Requirements, with some exemptions and certain additional requirements. Contact us for more information.
At this stage, crypto asset miners, node operators, and persons only rendering financial services for non-fungible tokens, are not subject to the oversight of the FSCA and therefore do not need an FSP licence.
The Declaration does not apply to or affect financial services rendered in relation to crypto asset derivatives. FSPs providing financial services in relation to crypto asset derivatives are already subject to the requirements of the FAIS Act and are not subject to the general exemption discussed above. Further, providers of crypto asset derivatives remain subject to the Financial Markets Act.
Click here to go all FSCA issued documents relating to crypto assets.
Masthead established in 2004, is an FSCA-approved compliance practice.
We have a team of experienced compliance officers and practice management consultants who can assist you with a GAP analysis and understanding of the FAIS Act requirements to ensure that you are successful in this next phase of your business journey. We also offer a variety of compliance solutions for larger organisations such as compliance training, online CPD, seminars and webinars and a central competency register, to help you with your compliance needs.