Having more than 1000 financial entities and more than 200 thousand FX trades daily, South Africa is considered to be Africa’s most important player in the forex sphere.
A new licensing framework was put forward by FSCA in April of 2018. The new framework stated that any and all over-the-counter derivatives providers have to qualify for a license before they can offer their services to South Africa.
Experts and analysts in the field noticed an interesting caveat within the framework that makes it so that the licensing regime only affects CFD and Forex brokers. Moreover, they state that while the framework and regulatory bills have been developing for the past few years, they are still far from ideal and aren’t as strong as regulations of the same kind.