These are the general outlook of these three countries that appear top in Blockchain and cryptocurrency adoption index.
Nigeria
According to the OAL article by Josephine Uba, in February 2021, the Central Bank of Nigeria sent a letter to all Financial Institutions and banks stating that it had banned trading of crypto and any forms of payments through cryptocurrency. The CBN claimed that cryptocurrency breaches existing laws as they are created by unregistered and unregulated companies. In addition the CBN claimed that the anonymity that comes with cryptocurrency makes it vulnerable to money laundering schemes. It also claim that the stability of financial systems are endangered due to the susceptibility of cryptocurrencies.
Despite these warnings from the CBN, many of Nigerian citizens are trading and investing in cryptocurrencies. Nigerian citizens have resorted to P2P trading. According to the article, in the last five years, Nigeria has traded over 60,215 Bitcoins which are worth over $566 million. This reflected a 19% rise of the bitcoin trade each year according to coin-Dances Statistics 2020, making it the largest marketplace for peer-to-peer bitcoin.
Currently Nigeria is one of the major countries with the most google search of the keywords “Blockchain” and “cryptocurrency”. According to the Chainalysis 2021 Global Crypto Adoption Index report, Nigeria ranks 6th in the top 20 crypto adoption countries. Chainalysis states Nigeria embraces the new virtual currency due to its decentralized nature and fear of the inflation rates experienced in the country.
South Africa
According to the QUARTZAFRICA, report South Africa is seen to be taking a different path than the rest of African countries. It is embracing the trading and investing of cryptocurrency laws.
With an aim of preventing financing of terrorism and” money laundering activities, the government decided to put into place laws that regulate the virtual currency. These regulations will help monitor any suspicious activities and keep records transactions and the clients’ information. The regulations will also help address customer due diligence, customer identification and verification. The crypto assets and service providers for cross-border financial flows will be monitored closely by the South African Reserve bank.
However, according to the New Regulatory Framework, South Africa is still limiting the exposure of banks and its financial institutions to cryptocurrency assets so as to avoid financial stability risks
Experts at South Africa’s Crypto Exchange Luno, say that there are formal guidelines that are expected to be introduced by the end of this year.
“Globally, we have seen moves to regulate crypto and we anticipate the introduction of a clear South African regulatory regime likely by the end of 2022. Regulatory certainty will have a host of positive spin-offs for the crypto sector,” said Marius Reitz, Luno’s general manager for Africa.
Kenya
The leading technology of M-PESA money transfer originates from Kenya. Unlike several developing countries, Kenya’s population is quite interested in cryptocurrency adoption. Kenya ranks 5th globally in cryptocurrency adoption according to the Chainalysis 2021 Global Crypto Adoption Index.
According to Africa Legal Network, Kenyans held bitcoins of approximately $1.5 billion, which equates to a 2.3% of the Kenya’s GDP in 2018, indicating massive reception. This is despite the Central Bank of Kenya cautioning its citizens against trading in cryptocurrencies, stating that there are no protection measures put in place should the business crumble down and that bitcoin is not a legal tender. However the CBK did not prohibit activities related to cryptocurrency, showing that one can legally trade and invest in cryptocurrencies.
According to the Bitcoinke.io, the CBK regulates cryptocurrencies through broad discretion and legal avenues. The National Payments system Act and the Kenya Money Remittance regulations are the major laws governing crypto trading in Kenya.
Also acts such as the Kenya Information and Communication Act and Capital Markets Act assist in crypto regulation. To operate in Kenya, cryptocurrency providers must virtually get a license, if not they are subject to dismiss.
Due to money laundering and terrorism activities that are common with cryptocurrencies, Kenya addresses these issues by working closely with other countries. The Global Insight reports that Kenya puts in measures according to the global anti-money laundering and compacting the financing of terrorism (AML/CFT). To regulate the crypto assets, Kenya works closely and is also a member of the International Organization of Securities Commissions.
There are regulations to what amount of crypto that can be transacted in Kenya. Banks should approve transaction that are amounting to $10,000.
The Kenyan government is gradually drafting inclusive and broad regulations are revolve around the cryptocurrency ecosystem and other new forms of technological advances.
Currently in Kenya there are activities from Cause Capitalism which aim to give equal opportunities to all. Cause capitalism works hand in hand with the newly launched World Causecoin. The World Causecoin is a new virtual currency for humanity which aims at providing a very safe channel of transferring aid to the needy communities.
How? You may ask. Every coin that is bought or traded, 2% of the amount is chained down to a non-profit company that will ensure there is delivery of services that are aiming to change the lives of the haves not. Not only by giving them aid from time to time, but also through service that will help them to be self-reliant. This is achieved by equipping the less fortunate with financial literacy skills so as to ensure they get the aid, the individuals would make maximum utilization to change their financial state and be more self-sufficient and self-reliant. World Causecoin is built on the avenue of Cause Capitalism. The priority here is to redistribute the world wealth to the less privileged especially in Africa so as to reduce the gap between the rich and the poor in societies across the world.
Africa continues to embrace cryptocurrencies into their systems and the citizens are responding quite positively through their involvement with crypto. The future of cryptocurrency is quite promising as we are expected to see the new virtual venture to continue blooming throughout Africa.
