Africa Crypto Week In Review: Compliance In South Africa For Growth, Hurdles In Nigeria

In the latest Africa Crypto week in review, learn how users are overcoming hurdles in Nigeria, and unpack surging adoption and new rules in South Africa – as 99Bitcoins helps you discover crypto Africa in July.

The past few months have been hot and cold for Africa. Indeed, there has been a spike in crypto adoption, and more blockchain use cases continue to emerge. However, immediate regulatory developments, especially in Nigeria, must be addressed.

Crypto And Blockchain News Making Headlines In Africa

As the continent navigates these pressing challenges and post wins on crypto adoption, the following events continue to shape the landscape:

Regulatory Progress In South Africa:

This week, the country’s primary regulator, the Financial Sector Conduct Authority (FSCA), approved more crypto businesses.

According to data, the FSCA approved 63 new applications, pushing the number of legal crypto businesses in the country from 138 as of June 30 to 201.

Since the exercise began on June 1, 2023, 383 applications have been received. Kotani Pay, a Kenyan-founded firm, was recently approved as a crypto business.

The decision to move from Kenya and comply with South Africa’s laws is because a robust crypto framework is being drafted and yet to be approved.

As the FSCA approves more businesses, it also emphasizes the need to comply with existing rules, especially those around taxation. The regulator launched 20 investigations into unauthorized crypto-related financial services to enforce compliance.

Crypto Boom In Africa: Nigeria Leads Charge, Kenya and South Africa Follow

A Chainanalysis report shows that crypto adoption in Africa is fast expanding, rising to $117.1 billion by 2023. This year, the continent will process over $451 million.

Of note, Nigeria leads with over 22 million users. Meanwhile, Kenya and South Africa follow behind with 6 million and 5 million users, respectively.

As seen in Nigeria and Ghana, more users are projected to adopt crypto, shielding themselves from currency devaluation.

Tokens like USDT enable fast, instant, and cheap transfer of value, while Bitcoin is seen as a store of value and a censorship-resistant means of value transfer.

Amid the crypto boom, Solana is gaining traction. The platform is scalable, enabling fast transaction processing.

The platform recently partnered with Flincap, a crypto firm in Nigeria, to attract even more users to the tech.

United States Policymakers Demand Nigeria Release A Binance Executive

Tigran Gambaryan, a Binance executive, continues to be held in Nigeria.

After his arrest and detention in February, it is reported that Gambaryan’s health is failing. It is amid charges of enabling Binance, the crypto exchange, to evade taxes and devalue the Naira.

However, pressure is now mounting on Nigeria to release the executive. This week, Congressman Rich McCormick submitted a resolution urging the Nigerian government to release the Binance employee.

At the same time, the policymaker is calling on the United States government to recognize that one of its citizens is being illegally detained.

Earlier, members of Congress wrote a letter to the White House, urging the case to be transferred to the United States.

Minister Wants Crypto To Be Regulated In Nigeria:

The minister of Finance in Nigeria wants the country’s Securities and Exchange Commission (SEC) to immediately address challenges relating to crypto regulation.

With strict industry oversight, there will be more integrity in the capital market. Currently, the minister said, fewer registration requirements could lead to some players falsely claiming that they have been licensed, scamming users as a result.

A big part of this will be the regulator conversing with emerging technologies like AI.

EXPLORE: Africa Crypto Week in Review: From Tax Revolution In Kenya, As South Africa Approves More Businesses, And Why Crypto Is Unstoppable in Nigeria

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.

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.
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