EN#0372 – South Africa Category I FSP, dormant, regulated by FSCA, for sale

An opportunity to acquire a South African Category I Financial Services Provider (FSP) licensed by the Financial Sector Conduct Authority (FSCA), authorized to provide intermediary services in relation to crypto assets, derivative instruments, and deposits. Originally established to support an OTC crypto business model, the entity offers a clean and dormant structure with existing banking arrangements, compliance documentation, and regulatory approvals, providing an efficient entry into the South African digital asset market.

Key Highlights:

• Company Status & Structure: South African entity holding an FSCA Cat I FSP license. The entity was originally established to support an OTC crypto business model, enabling clients to deposit funds, purchase crypto-assets, and withdraw crypto-assets. The company remains dormant with no ongoing business activity.
• Regulatory Standing: The entity maintains good regulatory standing with no known regulatory issues or enforcement actions.
• Licensed Activities: The license authorizes intermediary services in relation to:
  • Crypto Assets
  • Derivative Instruments 
  • Long-terms Deposits
  • Short-term Deposits 

 The approved license categories permit both non-automated advice and intermediary services.

• Capital Adequacy: There is currently no prescribed minimum regulatory capital requirement applicable to the entity. Accordingly, the company does not maintain regulatory capital.
• Operational Profile: The entity is dormant and has not commenced commercial operations, providing the purchaser with a clean regulated structure that may be adapted to its preferred business model, technology infrastructure, governance arrangements, and commercial strategy.
• Banking Structure: The entity maintains an operational corporate bank account with First National Bank (FNB) South Africa and utilizes an established local Payment Service Provider (PSP) for the handling of client funds.
• Compliance Framework: A comprehensive compliance framework is already in place, including a Risk Management and Compliance Program (RMCP), AML/CFT policies, and supporting internal compliance procedures.
• Financial Position: The entity has no known debt, financial liabilities, or legacy client obligations, providing a clean acquisition profile. Current monthly operating expenses are approx. USD 2.5k.

This South African Category I FSP represents an attractive acquisition opportunity for firms seeking a regulated entry into the South African financial and digital asset market. The combination of crypto asset permissions, existing banking infrastructure, established compliance documentation, and a clean corporate profile provides buyers with a ready-made platform while avoiding the time and complexity associated with obtaining a new license from inception.

For further information on the sale of this South African Category I Financial Services Provider, please contact our Mergers & Acquisitions team at  info@salvusfunds.com.  More entities for sale can be found within our  Entity Acquisition or Sale  service.

SALVUS Funds’ teams can be engaged for guiding on new license authorizations for investment, payments or crypto-asset services, ongoing regulatory compliance consultancy for such licensed entities, and support in successfully acquiring ready-made regulated entities. 

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