Crypto Africa Week in Review: Binance Arrests, South African Crypto Licensing, Tether Partnerships

This week deep-dive Binance arrests in Kenya, Nigeria entanglement, Tether partnership with Ivorypay & South Africa’s push for regulation as 99Bitcoin’s explore’s crypto Africa in review.

Is a Binance executive under arrest in Kenya? For now, the answer is shrouded in mystery.

While Nigerian authorities claim he’s facing charges of money laundering and tax evasion, Kenya denies his arrest. However, they acknowledge his presence in the country. 

Meanwhile, Tether, the issuer of USDT, the largest stablecoin by market cap, has partnered with a Nigerian startup to develop a solution to foster more efficiency and cheaper payments in the ever-expanding African market. 

Further south, South Africa is taking a step forward in regulating crypto and realizing their payment ambitions. 

Binance Executive’s Arrest in Kenya Unclear, Tether Joins Hands With Nigerian Startup

There is confusion surrounding the arrest of Nadeem Anjarwalla, a Binance executive facing charges in Nigeria. 

While it has been confirmed that the official is indeed in Kenya, top operatives at the country’s investigative agency, the Directorate of Criminal Investigation (DCI), have confirmed that no arrest has been made. 

Even so, one investigator now says that even if the executive is caught, authorities in Nigeria would have to wait for longer since there would be a lengthy extradition process.

A spokesperson of the National Police Service also said the Interpol cannot arrest a Kenyan without following the law.

Anjarwalla was arrested in Nigeria together with Tigran Gambaryan, another executive, on claims that Binance, the company they worked for, has been during down the Naira. 

Binance has since responded, claiming that Anjarwalla had no decision-making power in the exchange.

Amid this, Tether, the issuer of USDT, has partnered with Ivorypay, a Nigerian blockchain payments startup. 

Through this deal, Ivorypay will receive USDT directly from Tether. The goal is to foster more affordable transactions and increase user confidence while addressing the needs of the fast-rising African market.

South Africa Licenses Crypto Service Providers, CBDC Ambitions

In South Africa, the Financial Sector Conduct Authority (FSCA) recently licensed 75 institutions as crypto asset service providers (CASPs). 

The 75 approved institutions were out of the 324 submitted applications, per a statement issued on April 22.

🇿🇦The FSCA in South Africa has approved 75 institutions as crypto asset service providers (CASPs) pic.twitter.com/ipV7aLtgTR

— Kashif Raza (@simplykashif) April 24, 2024

Notably, of the 75 licensed CASPs, only a few have been approved to launch operations.

However, the FSCA clarified that this doesn’t signify their recognition of cryptocurrencies as legal tender.

“The public is reminded that the FSCA’s licensing powers are limited to the authorization and supervision of CASPs only as they render financial services related to crypto assets as defined under the FAIS Act, i.e., advice, intermediary, and investment management services. This authorization does not include the recognition of crypto assets as legal tender.”

Meanwhile, the South African Reserve Bank, the country’s central bank, has revealed a digital payments roadmap to achieve its Vision 2025 goals. 

The plan explores catching up on digital payment adoption, including crypto and central bank digital currency (CBDC). A study of retail CBDC was launched in 2021.

Among their top priorities is improving access to financial technology now that a big part of the population depends on cash.

This signals the country’s commitment to digitalization and its potential impact on the crypto market.

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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.

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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