- Yellow Card has done it again by becoming the first ever African exchange to receive a Virtual Asset Service Provider Licence to operate in Botswana
- Now with the series A and B, Yellow Card had the means, reputation, network, and drive to pursue and interconnect Africa with the rest of the world through crypto trading
- Botswana is among the few countries taking significant steps to implement higher regulations around digital assets and crypto trading
It is, without a doubt, the most lucrative time for fintech industries to exist in Africa. The crypto industry in Africa is at an all-time high, and crypto trading has rapidly increased over the years. Multiple Pan-African crypto exchange platforms originating from Africa, such as Yellow Card, have hit great heights that most of its peers envy.
Yellow Card’s main goal of promoting digital assets in Africa’s financial system has led it to overcome numerous milestones. It is now the first African exchange platform to receive a virtual asset service provider license.
Brief Overview of Yellow Card
In 2018, Chris Maurice founded the Pan-African crypto exchange platform in the hope of improving the current financial dilemma faced in most African countries. He believed digital assets would make up for most traditional economic systems’ inaccessibility.
Armed with this self-drive, he created a platform that simplified the buying, selling, and trading of cryptocurrency in Africa.
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In its Series B funding, the Pan-African crypto exchange platform outdid itself. It successfully raised close to $40 million, double its initial raise. The Pan-African crypto exchange accomplished this by incorporating critical figureheads within the crypto industry, such as Polychain Capital, Valar Ventures, and many more.
By this time, Yellow Card had made significant progress and was based across 21 countries in Africa, actively facilitating crypto trading and cross-border transactions. Its team believes Africa, in terms of digital assets, is required to start by interconnecting with each other.
Charity begins home, and establishing a tight crypto connection between multiple countries will make the crypto industry in Africa explode.
Now with the series A and B, Yellow Card had the means, Reputation, network, and drive to pursue and interconnect Africa with the rest of the world through crypto trading.
First exchange platform to receive Virtual Asset Service Provider Licence
Yellow Card has done it again by becoming the first ever Pan-African crypto exchange platform to receive a Virtual Asset Service Provider Licence to operate in Botswana. The Non-Bank Financial Institutions Regulatory Authority(NBFIRA) issued the license on the 29th of September, 2022. This makes it the standard for crypto operations in Botswana.
Chris stated that this was not just a monumental moment for the company but also the crypto industry in Africa. Receiving the Virtual Asset Service Provider License will open up new expansion channels concerning payment partners, banking, and incorporating digital assets in Africa.
It will also sign to other regulators in another market that Yellow Card is more than just a means to facilitate crypto trading. It is an organization pioneering and pushing boundaries and setting never seen before borders.
Receiving such a privilege is no easy feat yellow card has to be sanctioned and go through a rigorous process of proving its capabilities. It had to comply with global AML, Sanctions, FATF Travel Rule requirements, and KYC of all customers across all jurisdictions.
Also, Read Yellow card: Nigeria’s leading fintech expands its reach across Africa
In addition, the Pan-African crypto exchange had to register on GoAML and with local Financial Intelligence Units. In most of its jurisdictions, it helps report on AML, Sanctions, and Financial Crime matters.
To give them that extra edge, Yellow Card had to comply with the US Foreign Corrupt Practices Act to ensure that all its transactions were legitimate. No sound organization would want to conduct business with a company participating in illegal activities.
Why Yellow Card started in Botswana
Despite Africa’s rapid crypto adoption rate, African governments are still sceptical about integrating crypto with their financial systems. Implementing regulations that govern digital assets is like training a wild dog to sit down or roll over. It goes against its nature; hence not many have tried placing crypto regulations.
However, a few African nations have dared to try the impossible, and some have even succeeded. Botswana is among the few countries taking significant steps to implement higher regulations around digital assets and crypto trading.
Previously, the Bank of Botswana warned of the risks of investing in unregulated cryptocurrencies. And now, with the license in place, it will be more difficult for those who masquerade as legitimate Virtual Asset Service Providers to scam people.
Even though Botswana has a small population, digital innovation is at an all-time high. The zeal for finding the next big thing, the next innovation, and the challenge is deeply rooted within their culture.
Although the lack of support and infrastructure has significantly slowed their progress. Keletso Thophego, Botswana Country Manager for Yellow card, stated, “The majority of the population is unbanked because of the increasing difficulty of getting bank accounts.
The average person who does not have payslips suffers the most. There is no doubt that because of blockchain technology, we will be able to cater to the unbanked faster, more efficiently.”
With the new license, the future of crypto trading and other digital assets looks positive. The Reputation, reliability, resilience, and resources of the Pan-African crypto exchange will guarantee this new venture a success.
Read: Yellow card: Nigeria’s leading fintech expands its reach across Africa