Crypto investors in Africa currently have minimal or no protection in the market, as there are no clear-cut regulations for protecting assets. Most of the trading happening in the crypto space is not regulated, creating a considerable gap. The lack of regulation means investor protection on crypto exchange platforms remains much weaker compared to the securities or futures market.
Crypto regulation should strike a balance by implementing a registration and licensing regime to enable the exchanges or custodians to legally serve consumers within that market, strengthening consumer protection rules and eliminating market manipulation tactics.
The trend toward regulation and transparency of crypto in 2023 will gain traction. Consequently, more enterprises in the industry will grow emboldened and begin to interact with crypto to offer services to their customers. Despite recent developments in the crypto industry, it remains a significant area of interest. Customers are continually looking for methods to engage in the possibilities of a decentralized, low-cost, globally accessible banking system. They will, however, want to do so as securely as possible, with the comfort provided by professional guidance, rock-solid custodian services, and organizations with a strong history of governance and thorough third-party audit.
Crypto became cautious in late 2022 and will aim to get serious in 2023. People should expect to see more suits and fewer surf and skater clothing at events and conferences where the crypto community meets.
Ivan Chebeskov, head of the finance ministry's financial policy department, stated that using digital currencies in transactions for international settlements is a means...
According to Receita Federal, the Brazilian tax authority, between January and November, locals traded at least $11.4 billion in stablecoins in 2021
SmartPay,...
President Nayib Bukele added several laws advocating the incorporation of other digital currencies within the crypto ecosystem
He stated that making Bitcoin legal...
Overall, the growth of crypto in Sub-Saharan Africa will continue, provided inhabitants continue facing challenges that crypto has demonstrated it can solve. The solutions offered by crypto include preserving savings in periods of economic volatility and aiding cross-border remittances in places with strict capital controls.
Digital currencies have a habit of instantly dropping, causing shockwaves throughout the market
The UNCATD, United Nations Conference on Trade and Development, recently...
Eventually, DeFi inventors and regulators must collaborate to grow this technology throughout Africa for optimal benefits. DeFi might provide inexpensive and quick liquidity pools for African merchants and SMEs, faster transactions, and enhanced security. And, for the last mile, DeFi may provide blockchain-based financial services that are inexpensive, if not free, quick, and accessible through any mobile phone.
Cryptocurrencies have been very rewarding to some investors. However, a large number of people and institutions have lost their investment in the process. Therefore, African crypto enthusiasts and investors must understand the crypto market and trading dynamics.
The world has seen the creation of a new category of digital assets in recent years. The assets range from shitcoins to NFT, stablecoins to Central Bank Digital Currency (CBDC), and a new sort of legal personality (DAO) and Metaverse. Digital assets are establishing a new legal, financial, and social paradigm in Africa, with Cameroon playing a crucial role.
Since transactions are worldwide, crypto must have international coordination and holistic regulation. This way, crypto will live up to its potential on the African continent and beyond. Although significant progress exists in this area, the current fragmented approach to crypto regulation throughout the globe is not optimal.
