Africa Crypto Week in Review: Nigeria Plan To License Crypto Exchanges, Ghana May “Unban” Crypto As South Africa Target Traders For Revenue

Regulatory developments are very consequential to crypto adoption across Africa. This week saw developments in two significant economies, Nigeria and South Africa. Even so, there were other exciting news across the continent.

Let’s check them out:

Ghana About To Lift Crypto Ban?

Ghana will relax its crypto ban and create a regulatory regime for this sector. The Bank of Ghana unveiled guidelines in August for crypto assets after years of prohibiting cryptocurrency usage. 

As late as last June, the regulator maintained its prohibition but will unveil a framework for regulating the asset. 

These rules should be standard regulations against financial crimes. Ghana’s policy shift is significant as several African countries, including Egypt, still have bans on crypto usage. The increasingly mainstream appeal of crypto payments should transform such views in the near future. 

Nigeria Launches A New Licensing Framework for Crypto Exchanges 

Six months after Binance exited the Nigerian market, the country’s government has started issuing approvals to local crypto exchanges.

Binance ended its Naira services in March over government crackdowns, which saw the arrest of two executives. The country now seeks to regulate the sector rather than restrict it fully. 

Nieria is especially ripe for crypto adoption. It is a dynamic economy whose currency has unfortunately experienced serious inflation and a depreciating currency. These factors mean that crypto is an alternative to the national currency to support regular transactions for millions of users.

MANSA and Bitmama Partner To Boost Payments

DeFi platform MANSA has also moved to shore up its cross-border payment services by partnering with Bitmama.

This partnership looks to enhance efficiency through virtual crypto cards. Bitmama is a Nigerian crypto platform that provides services across 18 African countries. MANSA’s contribution will be the liquidity necessary to pre-fund accounts across Africa and expand user payment capabilities. 

A common critique of African economies is the silo effect borders and currencies have on trade. Such expansion of crypto payments could be the key to unlocking economic integration on the continent.

Other Trending News in Africa Crypto Industry

Besides the above, the following headlines made news:

• The South African Revenue Service (SARS), the country’s taxation collection agency, increasingly focuses on crypto traders.  Reports now indicate that crypto traders in the country have begun receiving notices from SARS, pointing out that their tax affairs are being reviewed. Of note is that the agency is leveraging AI to identify non-compliance. Those who don’t comply or evade taxes in South Africa are heavily penalized. 

• BitMobile South Africa and The Device Store are joining hands to bring the Phēnix X blockchain phone to Zambia . In this arrangement, The Device Store will retail the Phēnix X blockchain phone, offering, among others, new phone models, plans, support services, and more. The goal is eventually to offer a seamless shopping experience for customers. They will partner with local marketing and sales firms to enhance customer care ahead of the Phēnix X phone launch.

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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.