Crypto Africa Week in Review: Protestors Call for Crypto Reforms in Nigeria as Confusion Reigns in South Africa—but Will Tax Relief Spur Development in Kenya?
It’s a new month, with new crypto developments across Africa.
Crypto Platform Paychant has integrated Stellar into its network. Paychant is a fiat/off-ramp solution for crypto users across Africa. This integration will ensure users can transact seamlessly between Stellar and Fiat ecosystems and boost their operational capabilities.
South Africa and Nigeria are the two largest economies on the continent and set the most consequential trends.
South African financial firm FiveWest has published findings that indicate a 26.50% rise in crypto payments within the country. This rise is partly because of Five West’s integration of Binance Pay for its services.
The country’s young and tech-savvy population is fueling this usage increase, and crypto investors can look to South Africa for expansion.
Nigeria is experiencing nationwide protests over governance, which mirror similar events in Kenya last month. Amid the protests, there are reports that crypto activists are pushing for regulatory reforms.
The push is for crypto-positive regulations and representation within the country’s political systems.
Nigeria has little crypto regulation in place nationwide besides general financial service regulations. That said, it is generally a crypto-friendly jurisdiction with many crypto users.
Some feel that the governance protests should address other issues. That said, the emergence of voters and activism with crypto as a significant political consideration is notable.
Last month, Cardano founder Charles Hoskinson went viral for saying that crypto users should vote for politicians with crypto-friendly positions.
Amid this, the following crypto news made headlines:
1. Digital Asset Tax (DAT) In Kenya Overturned After Court Ruling:
This week, the Court of Appeal in Kenya declared the controversial Finance Bill 2023 unconstitutional, saying it lacked proper public participation.
This means that the 3% Digital Asset Tax (DAT) enforced in September 2023 is illegal.
Notably, the DAT targeted revenue from crypto exchanges and payment processors. The Treasury Department plans to appeal, taking the matter to the Supreme Court.
2. Bank of Ghana Completes CBDC Test Project
This week, the Central Bank of Ghana tests for Desft, a CBDC program. The bank was demonstrating how the solution would ease cross-border transfers and sharing of digital credentials.
It was done in partnership with Singapore’s MAS and aimed to boost the participation of SMEs from developing countries.
3. Confusion In South Africa: Exchanges Want Regulatory Clarity:
Even though the Financial Sector Conduct Authority of South Africa is receptive to crypto, releasing operating licenses to over 138 applicants in the past few weeks, analysts think there needs to be more clarity.
Legal professionals believe crypto laws should be strengthened to safeguard consumers from scams and fraudulent activities.
The South African Revenue Service (SARS) faces challenges in establishing clear tax regulations and is, much to the discomfort of some, continues to gather private information from licensed exchanges.
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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.
