Yellow Card, an Africa-focused cryptocurrency exchange platform, recently said it has received a virtual asset service provider (VASP) license to operate in Botswana. Granted by the country’s Non-Bank Financial Institutions Regulatory Authority, Yellow Card’s license allows the crypto exchange to bolster its operations on the continent.
Working With Regulators
The Africa-focused cryptocurrency exchange platform, Yellow Card, recently revealed it had received a virtual asset service provider (VASP) license to operate in Botswana. The licence, which was issued by Non-Bank Financial Institutions Regulatory Authority (NBFIRA), makes Yellow Card the first crypto exchange to be granted permission to operate in the Southern African country.
Remarking on his company’s latest milestone, Chris Maurice, the CEO and founder of Yellow Card, spoke of how the license opens the door for more opportunities. 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.
In a statement issued in late 2021, the Bank of Botswana (BOB) said the country did not have a specific legal or regulatory framework on crypto assets. It also warned residents engaged in crypto trading there would be no legal recourse should they suffer financial losses.
Serving Botswana’s Unbanked Population
However, in early 2022 the Botswana government took the initial step towards regulating cryptocurrencies when it presented the Virtual Asset Bill to the country’s parliament. As reported by Bitcoin.com News, the draft bill explained the circumstances in which a crypto entity would be granted an operating licence.
Botswana has since passed the Virtual Asset Act 2022 and Yellow Card’s operating license was issued on September 29 in accordance with Section 11 of the law.
Meanwhile, the crypto exchange’s Botswana manager Keletso Thophego said the granting of the license makes it possible for the Yellow Card to able to serve “the unbanked in a faster and efficient way.”