The CEO of Yellow Card said that the Botswana VASP license is the first license for African crypto exchange established by an African country.
African crypto exchange Yellow Card has received major regulatory approval to further expand its operations across the continent.
Yellow Card has received a virtual asset service provider (VASP) license from the Botswana Non-Bank Financial Institutions Regulatory Authority (NBFIRA), according to the October 19 announcement.
The new license officially authorizes Yellow Card to allow its customers to buy and sell Bitcoin.
and the tie
stablecoin with the local fiat currency, the Botswana Pula.
According to Chris Maurice, CEO and co-founder of Yellow Card, the new license opens up further opportunities for the company’s expansion to payment partners and banking institutions across Africa.
“This will further show regulators in other markets that we are not just a cryptocurrency company – we are pioneers, pushing boundaries and setting the standard,” said Maurice.
Yellow Card is the first cryptocurrency exchange to receive a VASP license in Africa, Maurice told Cointelegraph. “Exchanges operating across the continent may have VASP licenses from jurisdictions outside of Africa,” Maurice said, adding:
“The Botswana VASP license is the first African cryptocurrency exchange license established by an African country, and Yellow Card is the first recipient of a Botswana NBFIRA VASP license.”
Following the announcement, NBFIRA on September 29 issued the VASP license in accordance with Section 11 of the Virtual Assets Act 2022.
Now officially regulated by local authorities, Yellow Card said it also complies with major global regulations, including anti-money laundering and Know Your Customer requirements as part of the travel rule introduced by the Financial Action Task Force.
Yellow Card is also registered with goAML for AML, sanctions and financial crime reporting, and is also compliant with the US Foreign Corrupt Practices Act, the announcement said.
Related: Ghana Set to Catch Nigeria and Kenya in Crypto Adoption: Chainalysis
Located in South Africa, Botswana has a population of around 2 million people. His government passed a bill to regulate the trading of cryptocurrencies and digital tokens as part of its efforts to tighten AML measures in February 2022. The new rules require anyone who wants to offer crypto services in Botswana to apply for a license to be obtained from NBFIRA. and meet a list of conditions.
The government was very skeptical about crypto not long ago, with the central bank warning of the high risks of crypto investment in November 2021.