Crypto exchange Luno received a license from South Africa’s financial regulator, the company said Thursday, becoming one of the first crypto entities to be regulated in the country.

In a statement, the company said it received approval as a financial product under the Financial Advisory and Intermediary Services Act, 2002 (FAIS). Luno PTY LTD now appears on FSCA's registry of authorized entities.

The South African regulator started accepting licensing applications from crypto firms in June 2023 after legislation was passed to bring crypto into the scope of regulated financial activities in the country. The FSCA has promised hefty fines for companies that try to operate without obtaining the right approvals.

Around 60 firms are expected to be approved by the regulator in the short term.

“This is a positive step for both the cryptocurrency industry and South Africans. Compliance, safety and security for our customers have driven our growth since the beginning and will continue to be priorities as we expand our offering to introduce more features and products for financial institutions,” Christo de Wit, Luno’s country manager for South Africa, said in the statement.