Africa Crypto Week In Review: South Africa Reserve Bank Governor Blasts Bitcoin As Kenya Intends To Regulate Digital Assets

In 2025, Africa has shown that it will continue to navigate the complex crypto landscape. From the sequence of events over the past years, it is clear that the continent is not just a bystander but an active player, helping shape the crypto narrative.

From South Africa’s top banking boss blasting the idea of making Bitcoin a strategic asset to regulatory requirements in Kenya and new firms setting up mining operations in Ethiopia, Africa is actively positioning itself as a leader.

South Africa Crypto News: Governor Questions Bitcoin As a Strategic Reserve Asset

Donald Trump could create a crypto reserve in the United States, including multiple assets like Bitcoin. While this would be a massive endorsement, Lesetja Kganyago, the Governor of the South African Reserve Bank is challenging the notion of promoting BTC and making it a strategic reserve asset.

While speaking at the World Economic Forum in Davos, the Governor asked, “Why Bitcoin? Why not beef, mutton, or apples?” His skepticism stems from the coin’s criticism that it has no intrinsic value, unlike gold, an asset that some consider a better alternative.

The governor is cautious, warning the world of the dangers of what he termed as “regulatory capture” where policies might be bent to suit the will of the industry.

Countering this view, Coinbase CEO Brian Armstrong urged governments to accumulate BTC as a strategic asset.

https://twitter.com/brian_armstrong/status/1882501777578180613

Highlighting the coin’s features, he said its scarcity and ease of transfer make it an unmatched store of value, outshining the clunky gold currently held as reserves by nations worldwide.

Kenya Crypto News: Firms Must Open Offices Locally

In Kenya, there are solid steps to regulate crypto. By Friday, January 25, the Virtual Asset Service Providers bill, was still open for public comments.

Through this bill, it is clear that the government is rolling the red carpet for crypto, bringing clarity to a space that was previously full of uncertainties.

Since crypto trading or holding is not a crime in Kenya, the bill will help structure crypto operations in the country, even guiding businesses willing to set up shop.

The draft bill requires crypto firms willing to operate in the country to open offices locally. They must also appoint local CEOs and executives after clearance from agencies like the Capital Markets Authority (CMA).

Ethiopia Crypto News: New Firms Launching

Ethiopia is now among the world leaders in crypto mining. Thanks to the vast renewable energy resources, the East African nation currently hosts miners who moved away from China and Mongolia. Subsequently, it is one of the largest sources of Bitcoin hash rate after the United States.

This week, the Phoenix Group, a firm from Abu Dhabi, partnered with Data7 in a deal that will see the farm make use of the 80 MW in Ethiopia to mine Bitcoin.

Even though the size of the deal or the precise location of the farm wasn’t made public, it signaled Phoenix Group’s efforts to expand. The decision to expand, Munaf Ali, the CEO, added, is part of their strategy to strengthen its position as one of the top crypto miners.

“We are aggressively building out our mining capabilities … we are not just expanding our operations … we are strategically positioning ourselves at the forefront of a financial revolution where cryptocurrencies will play a central role in creating a more inclusive and dynamic global economy.”

Phoenix Group also operates a crypto mining farm in North Dakota.

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