FTX was Becoming a Force for Normalizing Cryptocurrencies in Africa

Now that it has left a trail of losses for companies and individuals, Africa’s financial regulators will sense an opportunity to place stricter constraints on crypto’s adoption. Some form of crypto regulation already exists in two-thirds of sub-Saharan countries, according to an IMF internal survey. Cameroon, Ethiopia, Lesotho, Sierra Leone, Tanzania, and the Republic of Congo have outright bans on crypto, while partial restrictions are in place in Zimbabwe and Liberia. Last month, South Africa said every crypto platform must get a license to operate, beginning in July 2023. A 20% tax on crypto transactions is making its way through parliament in Kenya. Nigeria hasn’t banned crypto outright, although the central bank forbids banks from processing crypto transactions. Following the fall of FTX, exchanges could now find themselves under renewed pressures.

QUARTZ AFRICA