The Financial Sector Conduct Authority (FSCA) of South Africa has ordered cryptocurrency exchanges to obtain licenses to operate in the country by the end of this year, Bloomberg writes.

The Financial Conduct Authority has already received about 20 applications since licensing opened a few weeks ago, and more are expected before the November 30 deadline, FSCA Commissioner Unathi Kamlana said in an interview.

The FSCA plans to take "enforcement action" which could see firms closed or fined if they continue to operate without a license after the deadline. “There are potential serious risks for customers when using crypto products, so it makes sense to introduce a regulatory framework. Time will tell the effectiveness of our measures and we will continue to work to improve and make changes where and if necessary,” he explained.