African Crypto Exchange To Expand Operations Post Regulatory Approval
Many countries globally have created licenses permitting crypto-related firms’ operations. This step is a measure to monitor and control the functions of such companies. Therefore every crypto firm aiming to operate in such jurisdictions must get the licenses to legalize its activities.
A recent report disclosed the latest achievement of Yellow Card, an African crypto exchange, in its licensing plans. According to the report, the exchange has received another regulatory license from Botswana.
Crypto Exchange Yellow Card Gets VASP License From Botswana
Yellow Card announced the receipt of its new virtual asset service provider (VASP) license. According to the announcement, the Non-Bank Financial Institution Regulatory Authority of Botswana (NBFIRA) approved the license.
Also, the announcement noted that the approval came on September 29. The issuer, NBFIRA, approved the license in line with Section 11 of the Virtual Asset Act, 2022.
With the license, Yellow Card can legally use pula, Botswana’s local fiat currency. This means its users could use fiat while buying, selling, and trading Bitcoin (BTC), Ethereum (ETH), and Tether (USDT).
The co-founder and CEO of Yellow Card, Chris Maurice, noted what the license meant for the firm. According to him, the firm is the first to receive an African-issued VASP license. In addition, it said that other exchanges operating across the continent might have VASP licenses from different jurisdictions outside Africa.
He reported that the Botswana VASP license is the first license of its kind for African crypto exchanges. Moreover, the approver of the license is an African country. This leaves Yellow Card as the first recipient of a VASP license from NBFIRA of Botswana.
Greater Opportunities Through The License
CEO Maurice expressed his excitement about receiving the license by his exchange. He stated that it opens more significant opportunities for the exchange in terms of expansion in payment partners and banking institutions in the continent.
Also, Maurice noted that the move would portray the company’s good disposition to other regulators in different places. It placed the crypto exchange among the top with great performance and operating standards.
Notably, the license now puts Yellow Card under the regulatory eyes of local authorities. The company has declared its compliance with some major regulatory watchdogs globally. It complies with the global AML and Know Your Customer (KYC) rules as a Travel Rule requirement. The Financial Action Task Force (FATF) introduced the rules.
Additionally, Yellow Card complies with the US Foreign Corrupt Practices Act. It is registered on GoAML to enable its reports on AML, sanctions, and financial crimes.
The southern region country, the Republic of Botswana, has over 2 million people. In February 2022, the government passed a bill to regulate crypto trading. This serves as a measure to tighten AML compliance in the country.
Also, the rules demand that any firm interested in offering crypto services must receive a license from the NBFIRA. Such companies must comply with all the necessary conditions through the license.Source