Fintech Services
South Africa boasts a well-regulated and dynamic fintech sector, supported by a robust legal framework and oversight from institutions such as the Financial Sector Conduct Authority (FSCA) and the Prudential Authority (PA). As one of Africa’s leading financial hubs, South Africa continues to evolve with regulatory developments designed to foster growth, innovation and stability in payments, digital banking, mobile money, and investment platforms.
MDB Law is at the forefront of fintech law, providing expert guidance across both traditional and emerging technology-driven sectors. Our firm has extensive experience advising clients on fintech regulation, compliance strategies and digital product development within South Africa’s legal framework and in various African and Asian countries. We take a proactive approach, helping businesses navigate complex regulatory requirements while positioning themselves to seize opportunities in a rapidly shifting industry landscape.
Our fintech team supports both start-ups and established operators, including cross-border remittance providers, derivatives and OTC service providers, ADLAs, mobile transfer operators, e-money and payment platforms, as well as asset managers and capital markets participants. We provide end-to-end legal support from incorporation and licensing through to risk management, compliance, dispute resolution and regulator engagement.
With proven expertise in blockchain, digital assets and technology-driven financial products, MDB Law helps clients build regulation-ready business models and deploy technology solutions that align with both local and international standards. Whether you are launching a new venture, integrating new technologies or expanding into new markets, MDB Law ensures your business remains fully compliant and positioned for sustainable growth.
As part of our broader fintech advisory, MDB Law also works extensively with clients in the stablecoin sector. This includes advising on issuance models, reserve management, licensing obligations and cross-border payment use cases. Our dedicated Stablecoin Advisory Services section below explores these solutions in greater depth, providing a clear framework for clients pursuing innovative digital currency strategies.
ADLA Licenses
We assist clients in obtaining authorization from the Financial Sector Conduct Authority (FSCA) to operate as an Authorised Dealer in Foreign Exchange with Limited Authority (ADLA). Our services include:
- Conducting an initial assessment to compile all necessary documents as required by the ADLA Manual.
- Ensuring all documentation is up to date and compliant with FSCA standards.
- Reviewing and refining business plans, with structured feedback and up to three rounds of revisions.
- Preparing a tailored Inspection Manual to meet the Finserv Department’s operational and reporting standards.
- Guiding clients through FICA compliance, including drafting essential documents such as Board Circulars, GoAML authorization letters, Compliance Officer appointment letters, and Risk Management and Compliance templates.
Over-the-Counter Derivatives Licenses
We provide specialized legal assistance to prospective and existing Over-the-Counter Derivative Providers (ODPs) by:
- Managing applications for new OTC licenses from the FSCA.
- Developing robust OTC frameworks, including Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) measures, as well as reporting obligations.
- Addressing FSCA directives on non-compliance, administrative penalties, and remedial actions.
- Advising on Standardized Contracts via Central Counterparties (CCPs).
- Ensuring compliance with FSCA and Prudential Authority (PA) regulations governing OTC derivatives.
Venture Capital Company Licensing
For Venture Capital Companies (VCCs) operating in South Africa, we offer legal guidance to:
- Navigate the regulatory landscape and meet FSCA and SARS requirements.
- Secure necessary SARS licenses and FSCA registrations.
- Ensure full compliance with the FAIS Act and other relevant regulatory frameworks
Alliance Banking
We assist banks and financial service providers in forming strategic alliances to enhance card and payment solutions for unbanked communities across Africa. Our support includes:
- Structuring BIN Sponsorship agreements with Authorised Dealers.
- Designing card service solutions linked to e-wallets, in-store rewards, and payment platforms.
- Ensuring compliance with ADLA systems under the FIC Act, PASA Act, and Banks Act.
Crypto Asset Service Providers License (CASPs)
For entities involved in crypto asset services, we offer legal support for:
- Licensing as a Financial Services Provider (FSP) through FSCA applications.
- Preparing detailed documentation, including experience portfolios, motivation letters, and business plans.
- Meeting competency requirements for Key Individuals and Representatives, including FAIS Fit and Proper standards and passing the RE1 examination.
- Ensuring compliance with the FAIS Act, General Code of Conduct, and other regulatory requirements.
Third-Party Payment Provider License (TPPP)
We provide specialized legal assistance to prospective and existing Over-the-Counter Derivative Providers (ODPs) by:
- Managing applications for new OTC licenses from the FSCA.
- Developing robust OTC frameworks, including Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) measures, as well as reporting obligations.
- Addressing FSCA directives on non-compliance, administrative penalties, and remedial actions.
- Advising on Standardized Contracts via Central Counterparties (CCPs).
- Ensuring compliance with FSCA and Prudential Authority (PA) regulations governing OTC derivatives.
Risk Management & Compliance: FIC Act
We develop Risk Management and Compliance Programs (RMCPs) in line with the Financial Intelligence Centre Act (FIC Act), incorporating:
- Due Diligence procedures (Section 21, FIC Act).
- AML/TFS screening measures (Section 28, FIC Act).
- FIC reporting obligations to ensure full compliance.
FIC Sanctions & Appeals
Our firm provides legal representation and advisory services for:
- Assisting accountable institutions with FIC inspections and assessments.
- Defending clients in formal representations before the FIC under Section 45 of the FIC Act.
- Appealing financial penalties, reprimands, or directives issued by the FSCA or FIC at the Appeal Board.
Corporate Governance Frameworks (CGF)
We support corporate entities in establishing and managing effective Corporate Governance Frameworks (CGF) to enhance regulatory compliance and risk management. Our services include:
- Structuring governance frameworks with three layers of defence to strengthen board accountability and mitigate financial crime risks.
- Implementing directives issued by the FIC, FSCA, and PA to ensure adherence to regulatory frameworks, including:
- Financial Markets Act
- Financial Sector Regulation Act
- FAIS Act
- FIC Act
- PASA Act
- Banks Act
- Consumer Protection Act
- Electronic Communications and Transactions Act
- Protection of Personal Information Act (POPIA)