Crypto Africa Week in Review: Crypto-Motivated Kidnappings, Nigeria Crackdowns, and Leadership Shifts In Uganda

In this week’s crypto Africa news round-up, uncover a failed international crypto kidnapping in South Africa, learn more about Ripple’s Africa expansion plans, unpack the Nigeria SEC’s latest crypto actions, and discover the new AI visionary Chairman for Uganda’s Blockchain Association.

The world, especially the United States, is warming up to crypto. From policies to politics and complex product approvals, the global market is ready for this new asset class.

Back in Africa, crypto’s multifaceted nature and dynamism continue to show. From resistance to acceptance and accelerated adoption, crypto in Africa is a mixed bag.

This week, however, a bizarre kidnapping case in South Africa dominated headlines. At the same time, the regulatory crackdown in Nigeria seems not to be going away anytime soon, even with Ripple targeting Africa. Meanwhile, leadership change in the Blockchain Association is grabbing headlines in Uganda.

South Africa: Crypto Kidnapping Nightmare in Johannesburg

For one South African couple, things changed for the worse this week. A seemingly ordinary day turned nightmarish when they were abducted by a gang posing as Interpol agents.

The kidnapper, led by Moses Chademana, wanted to steal over $13 million worth of crypto.  

In a Zimbabwean court, details of the case painted a chilling picture. Allegedly, Chademana worked with several accomplices, including two Caucasians, targeting the couple specifically for their reported association with a crypto recovery service. 

They preyed on the couple’s fears, claiming that assassins were trailing them before whisking them to Zimbabwe under the pretense of an Interpol meeting.

Upon arrival in Zimbabwe, the victims (a pair of prominent academics in SA) were exchanged to Chademana at an Engen fuel station before being held in a private lodge.

However, the couple later managed to message their kin, sending their location after a kidnapping report had been filed.

Nigeria: Crypto Regulations and The Naira, Ripple Eyes Africa

Across the continent in Nigeria, a different kind of drama was unfolding. 

Last week, the Nigerian Securities and Exchange Commission (SEC) said global crypto exchanges, including KuCoin, complied with their directive.

The regulator has long demanded that global crypto exchanges delist the Naira. The commission says this will help stabilize the currency and prevent manipulation. 

The crackdown is part of the government’s broad set of economic reforms. Some of the most notable reforms include allowing the Naira to float freely. 

By not intervening, the gap between the pricing of the Naira in the black market and on official platforms would be narrowed. This move aims to liberalize Nigeria’s markets and attract foreign investment.

Even so, the decision not to prop up the Naira has seen the current devaluation, leading to high inflation. Nigeria crypto participation focuses heavily on Bitcoin as a hedge against runaway inflation.

Facing criticism, the government has deflected blame on crypto exchanges like Binance, accusing these operators of destabilizing the Naira. Officials even claim that Binance had a “deleterious effect” and “messed up” the Nigerian economy.

Still, this is not deterring firms like Ripple from laying out plans for Africa. Reece Merrick, the firm’s Managing Director for the Middle East and Africa, said the blockchain company plans to expand into custody and supporting XRP Ledger programs across the continent.

Uganda: Blockchain Association Gets New Leadership

While the news from South Africa and Nigeria painted a somewhat turbulent picture, Uganda’s blockchain scene appears to be evolving positively.

There was a change of guard at the Blockchain Association of Uganda (BAU ), with Reginald Tumusiime taking over as chairman. He takes over from Kwame Rugunda, who has led the association since its establishment in 2018.

The new chair wants to promote blockchain technology in the country and strike valuable partnerships with government agencies, banks, and other important tech stakeholders.

By collaborating with other players, BAU will be at the forefront of creating an environment that fosters innovation and empowers entrepreneurs. 

Beyond blockchain, the new chair is also interested in exploring emerging technologies, including Artificial Intelligence (AI).  

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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.