African crypto exchange Yellow Card has received significant regulatory approval to continue expanding its operations across the continent.
Yellow Card has obtained a virtual asset service provider license (VASP) from the Non-Bank Financial Institution Regulatory Authority of Botswana (NBFIRA), according to the announcement on Oct. 19.
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According to Chris Maurice, CEO and co-founder of Yellow Card, the new license opens up greater opportunities for the firm’s expansion to payment partners and banking institutions across Africa.
“This will further show regulators in other markets that we are not just any other cryptocurrency company — we are pioneering, pushing boundaries and setting the standard,” Maurice stated.
Yellow Card is the first crypto exchange for obtaining a VASP license issued in Africa, Maurice told Cointelegraph. “Exchanges that operate across the continent may have VASP licenses from jurisdictions outside Africa,” Maurice said, adding:
“The Botswana VASP license is the first license for African cryptocurrency exchanges established by an African country, and Yellow Card is the first recipient of a VASP license from Botswana’s NBFIRA.”
According to the announcement, NBFIRA issued the VASP license on Sept. 29 in accordance with the Section 11 of the Virtual Asset Act, 2022.
Now officially regulated by local authorities, Yellow Card says it also complies with some major global regulations. The company complies with global 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 on GoAML to help report on AML, sanctions and financial crimes, and it is also compliant with the Foreign Corrupt Practices Act of the United States, the announcement notes.
Located in Southern Africa, the Republic of Botswana has a population of roughly 2 million people. The local government passed a bill to regulate trading in cryptocurrencies and digital tokens as part of efforts to tighten AML measures in February 2022. The new rules required anyone seeking to offer crypto services in Botswana to get a license from the NBFIRA and to comply with a list of conditions.
The local government was very skeptical about cryptocurrencies not long ago, with the central bank warning about the high risks of cryptocurrency investment in November 2021.