African crypto exchange Yellow Card has gotten significant regulatory approval to carry on expanding its operations over the continent.
Yellow Card has acquired an online asset company license (VASP) in the Non-Bank Lender Regulatory Authority of Botswana (NBFIRA), based on the announcement on March. 19.
The brand new license formally authorizes Yellow Card to permit its customers purchase and sell Bitcoin (BTC), Ether (ETH) and Tether (USDT) stablecoin using the local fiat currency, Botswana pula.
Based on Chris Maurice, Chief executive officer and co-founding father of Yellow Card, the brand new license reveals greater possibilities for that firm’s expansion to payment partners and financial institutions across Africa.
“This will further show regulators in other markets that we’re not only every other cryptocurrency company — we’re pioneering, pushing limitations and setting the conventional,” Maurice mentioned.
Yellow Card may be the first crypto exchange for acquiring a VASP license issued in Africa, Maurice told Cointelegraph. “Exchanges that operate over the continent might have VASP licenses from jurisdictions outdoors Africa,” Maurice stated, adding:
“The Botswana VASP license may be the first license for African cryptocurrency exchanges established by an African country, and Yellow Card may be the first person receiving a VASP license from Botswana’s NBFIRA.”
Based on the announcement, NBFIRA issued the VASP license on Sept. 29 in compliance using the Section 11 from the Virtual Asset Act, 2022.
Now formally controlled by local government bodies, Yellow Card states additionally, it matches some major global rules. The organization matches global Anti-Money Washing and Know Your Customer needs included in the Travel Rule created by the Financial Action Task Pressure.
Yellow Card can also be registered on GoAML to assist set of AML, sanctions and financial crimes, which is also compliant using the Foreign Corrupt Practices Act from the U . s . States, the announcement notes.
Related: Ghana set to trap as much as Nigeria and Kenya when it comes to crypto adoption: Chainalysis
Situated in Southern Africa, the Republic of Botswana includes a population of roughly two million people. The neighborhood government passed an invoice to manage buying and selling in cryptocurrencies and digital tokens included in efforts to tighten AML measures in Feb 2022. The brand new rules needed anybody trying to offer crypto services in Botswana to obtain a license in the NBFIRA and also to adhere to a summary of conditions.
The neighborhood government was very skeptical about cryptocurrencies not lengthy ago, using the central bank warning concerning the high perils of cryptocurrency purchase of November 2021.
