African crypto exchange to expand operations after regulatory approval
Many countries globally have created licenses that allow crypto-related firms to operate. This step is a measure to monitor and control the functioning of such companies. Therefore, every crypto firm aiming to operate in such jurisdictions must obtain licenses to legalize their activities.
A recent report revealed 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 Provider (VASP) license. According to the announcement, the Botswana Financial Institutions Regulatory Authority (NBFIRA) approved the licence.
The announcement also 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, the Yellow Card can legally use the pula, Botswana’s local fiat currency. This means that users can use fiat while buying, selling and trading Bitcoin (BTC), Ethereum (ETH) and Tether (USDT).
Yellow Card co-founder and CEO 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 other exchanges operating across the continent may hold VASP licenses from various 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 in Botswana.
Greater opportunities through the license
CEO Maurice expressed his excitement at receiving the license at his exchange. He stated that it opens several significant opportunities for the exchange in terms of expansion in payment partners and banking institutions on the continent.
Maurice also noted that the move would portray the company’s good disposition vis-à-vis other regulators in various locations. It placed the crypto exchange among the top with good performance and operating standards.
In particular, the license now places a yellow card under the regulatory eyes of local authorities. The company has declared compliance with some major regulatory watchdogs globally. It complies with global AML and Know Your Customer (KYC) rules as a travel rule requirement. The Financial Action Task Force (FATF) introduced the rules.
In addition, the Yellow Card complies with the US Foreign Corrupt Practices Act. It is registered with GoAML to enable reports on AML, sanctions and financial crime.
The country in the southern region, the Republic of Botswana, has over 2 million people. In February 2022, the government passed a bill to regulate crypto trading. This acts as a measure to tighten compliance with AML in the country.
The rules also require any firm interested in offering crypto services to obtain a license from NBFIRA. Such companies must comply with all necessary conditions through the licence.
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