African fintech company Kotani Pay plans to expand its crypto offerings in SA, after being awarded a Crypto Asset Service Provider (CASP) licence by SA’s Financial Sector Conduct Authority (FSCA).
According to the company, the CASP licence, coupled with its existing SOC II compliance certificate from the Financial Intelligence Centre, solidifies its position as a trusted partner for businesses and individuals in Africa's growing crypto market.
Kotani Pay is a cash-in and cash-out platform that enables Web3 businesses and their users to convert their digital assets into local currencies.
The CASP licence sets a new benchmark in regulatory compliance and allows the company to scale and expand its offerings, it says.
In April 2024, the FSCA confirmed it had approved 75 institutions to be licensed as CASPs. By 30 June, the financial regulator said it had approved a further 63 applications.
Felix Macharia, CEO of Kotani Pay, believes regulation is essential to build trust and confidence in digital finance.
In the coming year, Kotani Pay will scale up its on-ramp and off-ramp operations in SA, enhancing the ease of converting between crypto-currencies and local currencies, he notes.
“Additionally, we will be introducing new features to improve user experience and expand our service offerings.”
On-ramp and off-ramp are the entry and exit points to the blockchain world and the real world.
The fintech’s platform, for businesses and individuals, can be accessed using a plug-and-play API, where other Web3 organisations can integrate and access on-ramp and off-ramp capabilities for end-users in Kenya, SA, Ghana and Zambia, allowing them to transfer funds to their preferred payment platforms in local currencies.
With a network of liquidity partners on the continent, it enables cash-in and cash-out for clients in their preferred local currencies via mobile money, card, or bank account.
“As a business-to-business and business-to-customer business, our API allows businesses to accept crypto-currency payments directly from their customers, providing a modern and flexible payment solution.
“Our API also offers instant conversion of crypto-currency payments into local currency, protecting merchants from price volatility. This means businesses can easily integrate our solution to enable their customers to make purchases and transactions at retail stores using crypto-currencies,” adds Macharia.
Offerings include an SMS Wallet that allows users to access a blockchain wallet without internet access. Users can connect to the blockchain and access their funds by leveraging Kotani Pay’s middleware technology and cash out through their mobile money accounts in their local currency.
The fintech firm also offers Stablecoin settlements for businesses needing US dollar settlements, by providing access to dollar-pegged stablecoins through an over-the-counter service. This allows them to settle payments quickly, streamlining operations and mitigating foreign exchange volatility.
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