South Africa’s Financial Intelligence Centre (FIC) has flagged the country’s crypto asset service provider (CASP) industry as high-risk for money laundering and terrorist financing. In its April 2025 sector report, the FIC notes that despite 256 CASPs registering under new regulations since December 2022, many unregistered operators likely remain active.
The report highlights the complexity of monitoring the sector, with more than 5.8 million South Africans—about 9.4% of the population—owning crypto assets. The challenge of valuing these holdings adds to the regulatory burden.
Several CASPs operate cross-border, with 25 South African firms based abroad, particularly in Singapore, Switzerland, and the UK. This cross-jurisdictional activity increases exposure to inconsistent regulatory environments.
“While the money-laundering and terrorist financing risks have technically been addressed by legislative changes, such legislative changes in respect of exchange control are still in the planning phase,” the report notes.
While regulations have improved, issues like exchange control for crypto assets remain unresolved. The FIC also points to widespread consumer ignorance about crypto usage and risks, leaving many vulnerable to fraud and criminal exploitation, including use as money mules.
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