Africa, one of the fastest growing crypto markets in the world, is starting to regulate its cryptocurrency markets. In the wake of the FTX collapse, financial services executives and lawmakers all over the world are calling for better regulation of the crypto industry. As of now, regulation is patchy worldwide — EU regulations will take effect in 2024, the U.S. is still developing a regulatory framework, and China and Russia ban crypto-assets fully, or partially (respectively).
Sub-Saharan Africa is, in particular, rapidly developing digital currencies because they bypass traditional banking services. While the region accounts for the least cryptocurrency transaction volume, it has some of the world’s most well-developed cryptocurrency markets, according to Chainanalysis. Kenya, Nigeria and South Africa have the highest crypto adoption rates, especially on peer-to-peer exchanges.
But with the plunge in prices of major cryptocurrencies like Bitcoin and Ethereum, policymakers are concerned that crypto poses risks to financial and macroeconomic stability. Two-thirds of sub-Saharan African countries have implemented some restrictions on crypto-assets, and about 20% have banned them.