Pan-African crypto exchange Yellow Card wins virtual asset license

African crypto exchange Yellow Card has received significant regulatory approval to continue expanding its operations across the continent.

Yellow Card has been granted a virtual asset service provider (VASP) license by the Financial Institutions Regulatory Authority (NBFIRA) in Botswana, according to the October 19 announcement.

The new license officially authorizes Yellow Card to allow its customers to buy and sell Bitcoin (BTC), Ether (ETH) and Tether (USDT) stablecoins with the local fiat currency, the Botswana pula.

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 demonstrate to regulators in other markets that we are not just any other cryptocurrency company – we are cutting edge, pushing boundaries and setting the standard,” said Maurice.

Yellow Card is the first crypto exchange to get a VASP license issued in Africa, Maurice told Cointelegraph. “Exchanges operating across the continent may hold VASP licenses from jurisdictions outside of Africa,” Maurice said, adding:

“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 September 29 in accordance with section 11 of the Virtual Asset Act, 2022.

Now officially regulated by local authorities, Yellow Card said it also complies with major global regulations, including anti-money laundering and the Know Your Customer requirements as part of the travel rule introduced by the Financial Action Task Force.

Yellow Card is also registered with goAML to assist in AML, sanctions and financial crime reporting and is also compliant with the US Foreign Corrupt Practices Act, the announcement said.

Related: Ghana to catch up with Nigeria and Kenya in terms of crypto adoption: Chainalysis

Botswana is located in southern Africa and has a population of approximately 2 million people. The government passed a bill to regulate the trading of cryptocurrencies and digital tokens as part of efforts to tighten AML measures in February 2022. The new rules require anyone wishing to offer crypto services in Botswana to obtain a license from NBFIRA and comply with a list of conditions.

The government was very skeptical of cryptocurrencies not long ago, and the central bank warned of the high risk of cryptocurrency investments in November 2021.