Pan African cryptocurrency exchange platform, Yellow Card has made another significant stride in the industry, becoming the first cryptocurrency company on the continent to be granted a Virtual Asset Service Provider licence to operate in Botswana. The exchange platform has revealed this today in a press statement.
According to Yellow Card, the licence, in accordance with Section 11 of the Virtual Asset Act, 2022 of Botswana, was issued by the Non-Bank Financial Institutions Regulatory Authority (NBFIRA) on the 29th of September 2022 and will become the standard for crypto operations in the country.
According to Chris Maurice, CEO, and co-founder of Yellow Card, this is a monumental moment for the company, its customers, investors, and the crypto industry as a whole as it positively impacts everyone across the value chain.
He said, “This opens up greater channels of expansion with regards to payment partners, banking, and expanding our client base 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. All the more reason for them to work together with us as well.”
The Bank of Botswana previously issued a warning about the risks of investing in unregulated cryptocurrencies. However, as part of efforts to tighten anti-money laundering regulations, Botswana’s lawmakers passed a bill in February 2022 to control trade in cryptocurrencies and digital tokens.
The regulations require anyone seeking to offer cryptocurrencies or digital tokens in Botswana to get a license from the Non-Bank Financial Institutions Regulatory Authority and adhere to a list of conditions.
Commenting more on digital innovation and the Botswana fiat currency, Yellow card highlighted, “Although Botswana has a small population, they boast a significantly strong purchasing power due to the Pula’s strength relative to other African currencies. When it comes to digital innovation, citizens have a high-risk tolerance and are always looking for the next big thing in the digital space. That said, the appetite for innovation and the challenges ordinary citizens face due to the lack of access is a massive gap in the Botswanan market that Yellow Card is catering to.”
Keletso Thophego, Botswana Country Manager for Yellow Card also stated, “The majority of the population is unbanked because of the increasing difficulty of getting bank accounts for the average people who do not have payslips. There’s no doubt that because of blockchain technology we have been able to cater to the unbanked in a faster and more efficient way.”
He added, “With the new licence in place, the future of cryptocurrency trading and other digital tokens looks positive. Yellow Card remains one of the most reliable, secure, fastest, and licensed crypto exchange platforms on the continent. Allowing Batswana to buy and sell Bitcoin, Ethereum, and USDT at the best rates with Pula.”
The licence announcement comes less than one month after the company closed a $40M Series B funding. The round was aimed at enabling the company to expand across the continent, develop new product products, and advance strategic partnerships.