• About Us
  • Careers
  • Contact
No Result
View All Result
Wednesday, June 4, 2025
DeFi Planet
  • News
    • People
    • Business
    • Crime
    • Regulation
    • Crypto
    • CBDC
  • Markets
    • Bitcoin
    • Ethereum
    • Stablecoins
    • Altcoins
    • Crypto ETFs
    • Memecoins
  • Policy
  • Articles
    • Press Releases
    • Opinion
    • Explainers
    • Guest Post
    • Sponsored
  • Directory
    • Companies
    • People
    • Products
    • Wallets
  • Multimedia
    • Videos
    • Podcasts
  • Learn
    • DeFi Basics
    • Tutorials
    • Reviews
    • Blockchain Fundamentals
  • Research
    • Case Studies
  • Explore
    • DeFi
    • Crypto Gaming
    • NFT
    • DAO
    • Metaverses
  • Jobs
  • Markets Pro
    • DeFi Planet Pro
    • Spend Crypto
    • Swap Crypto
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer
  • News
    • People
    • Business
    • Crime
    • Regulation
    • Crypto
    • CBDC
  • Markets
    • Bitcoin
    • Ethereum
    • Stablecoins
    • Altcoins
    • Crypto ETFs
    • Memecoins
  • Policy
  • Articles
    • Press Releases
    • Opinion
    • Explainers
    • Guest Post
    • Sponsored
  • Directory
    • Companies
    • People
    • Products
    • Wallets
  • Multimedia
    • Videos
    • Podcasts
  • Learn
    • DeFi Basics
    • Tutorials
    • Reviews
    • Blockchain Fundamentals
  • Research
    • Case Studies
  • Explore
    • DeFi
    • Crypto Gaming
    • NFT
    • DAO
    • Metaverses
  • Jobs
  • Markets Pro
    • DeFi Planet Pro
    • Spend Crypto
    • Swap Crypto
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer
No Result
View All Result
DeFi Planet
No Result
View All Result

Crypto Regulation Around The World: AFRICA: Nigeria, South Africa, Rwanda, Egypt, Kenya

13 June 2022
in Articles, Opinion
Reading Time: 8 mins read
118 5
Home Articles

Contents

Toggle
  • Crypto Regulation in Nigeria
  • Crypto Regulation in South Africa
  • Crypto Regulation in Rwanda
  • Crypto Regulation in Egypt
  • Crypto Regulation in Kenya 
    • In Conclusion,

Globally, the demand for and usage of cryptocurrencies and similar digital assets has steadily increased. A once-ignored digital asset is now being used to send money across borders, stored for speculative purposes, as a key to access the different features that blockchain platforms offer, and much more. 

The continent of Africa is no exception, as residents in several African countries now use cryptocurrencies to achieve various objectives. 

According to statistics, “cryptocurrency adoption in Africa grew 1200% between July 2020 and June 2021, making it the fastest adoption rate in the world.”

Data shows that “transaction volume made up of retail-sized transfers in Africa was 7%, against the global average of 5.5%.”  

In comparison to other continents, Africans actively prefer the decentralized aspect of cryptocurrency usage, particularly peer-to-peer trading.

This article examines the crypto legislation in several African nations, including Nigeria, South Africa, Rwanda, Egypt, and Kenya. 

Crypto Regulation in Nigeria

In Nigeria, cryptocurrencies are not explicitly prohibited. However, the country’s apex financial institution, the Central Bank of Nigeria, has banned the use of banking facilities in the country for cryptocurrencies. 

Residents can’t utilize their credit and debit cards to purchase cryptocurrencies on any exchange or crypto-related platforms. This means that banks are not allowed to get involved in cryptocurrencies. These banks are also not expected to permit their customers to use the banking channels to conduct cryptocurrency transactions.  

In the past, crypto enthusiasts could purchase cryptocurrencies with their debit cards and link them to any exchange they wanted. After token sales, customers could withdraw fiat currency from the crypto exchange directly to their bank accounts. This is no longer possible, and customers who ignore this regulation risk having their bank accounts closed.

In February 2021, the Central Bank of Nigeria prohibited the use of banking infrastructure or channels for cryptocurrency-related activities. 

Banks were directed to restrict any cryptocurrency-related transactions and block the accounts of individuals or organizations involved in such activities. 

Failure to prevent customers from using banking channels to engage in crypto-related activities incurs significant sanctions, and some Nigerian banks have already been penalized and fined.

The banks listed below allegedly disregarded the regulations and were subsequently penalized by the CBN. 

In April 2022, Stanbic Bank was fined N200 million, while Access Bank was fined N500 million. Fidelity Bank was billed to pay N14.3 million, and UBA has been fined N100 million.

Though the Central Bank of Nigeria may have banned the use of banking facilities for crypto transactions, it has taken an interest in Central Bank Digital Currencies (CBDCs) as it was one of the first countries to launch a CBDC called the e-Naira. The CBDC development aims to foster “increased cross-border trade, accelerated financial inclusion, as well as cheaper and faster remittances.” 

Recently, the Nigerian Securities and Exchange Commission (SEC) published new guidelines governing virtual asset issuance, exchange, and storage.  

Any individual or organization intending to issue virtual assets comparable to securities must first register with the Nigerian SEC. The regulation covers digital asset firms such as “digital asset offering platforms (DAOPs), digital asset custodians (DACs), virtual asset service providers (VASPs), and digital asset exchanges (DAX).” 

When a firm applies to the SEC to issue digital assets that resemble securities, the SEC typically responds within thirty days.

According to the SEC, 

“The commission may reject any application for registration of digital assets if, in its opinion, the proposed activity infringes public policy, is injurious to investors, or violates any of the laws, rules, and regulations implemented by the commission.”

There is a cap on the amount a company can raise, and it must not exceed N10 billion. 

Crypto Regulation in South Africa

Currently, South Africa does not have regulations that ban or legalize cryptocurrencies and their usage in the country.

However, cryptocurrency taxation is a significant aspect of the crypto climate in South Africa. The South African Revenue Service (SARS) has stated that those who use cryptocurrencies and earn gains or profits from them are expected to pay taxes. The crypto tax is subject to the same laws that apply to personal income in the country.  

Crypto enthusiasts are also requested to “submit their crypto gains or losses as part of their taxable income. A crypto-asset can also be subject to capital gains if it is held and disposed of with capital intent.” 

Regarding VAT, cryptocurrencies are not subject to VAT except in cases where services are provided.  

Amendments to the financial laws are in the works. A proposed amendment regarding cryptocurrency usage and crypto firms is expected before 2022 runs out. It is expected that “any person providing advisory or intermediary services related to crypto-assets must be recognized as a financial services provider under the act and must comply with the act’s requirements.” 

The proposed amendments have elicited divergent opinions in the country, with some believing they will enable residents to identify the best crypto institutions to use. 

Another school of thought argues that the regulations will compel cryptocurrency firms to implement Know Your Customer/ Anti-Money Laundering (KYC/AML) processes into their platform structures, preventing many residents from accessing their platforms.

Crypto Regulation in Rwanda

The authorities in Rwanda consider this digital asset to be illegal. According to the National Bank of Rwanda (NBR), “anyone who gets involved in the business of buying and selling digital money does so at their own risk.” 

Because of the risks associated with cryptocurrencies, the authorities have advised people to stay clear of them. There are currently no specific regulations governing the use of cryptocurrencies and digital assets in the country. 

The National Bank of Rwanda has plans to create its Central Bank Digital Currency (CBDC) in the future, although it is currently researching the subject.

Based on the study of CBDC and cryptocurrencies by the financial authority, the director of payment systems at the NBR, John Karamuka, stated,

“Nevertheless, we are benchmarking on countries that are at more advanced stages, learning both positive and negative experiences. We are basing on work done by international institutions such as the International Monetary Fund, World Bank, World Economic Forum among others.”

Crypto Regulation in Egypt

The Central Bank of Egypt issued a warning in 2018 stating the risks associated with using cryptocurrencies and advised residents to avoid using them. Although crypto usage is not formally prohibited in Egypt, this virtual asset is not considered legal tender. Residents are not permitted to use cryptocurrencies as a medium of exchange for everyday transactions. 

Two years later, in 2020, the Central Bank of Egypt prohibited the creation, trading, and promotion of cryptocurrencies unless the individual or organization involved had obtained the appropriate license. 

According to a religious decree issued by the Egyptian Islamic legislator, Dar al-Ifta, cryptocurrencies are considered haram and should therefore not be utilized by Muslims. They believe that this type of digital currency comes with significant risks. Since the decree is a fatwa and not a law enacted by the Egyptian government, it is not binding on the average resident.

Crypto Regulation in Kenya 

Cryptocurrencies and similar digital assets are regulated by three major laws, which are: The National Payments Systems Act (NPSA), The Capital Markets Act (CMA), and The Kenya Information and Communication Act (KICA). 

The Central Bank of Kenya ensures that crypto platforms and users adhere to the National Payments Systems Act (NPSA). The Capital Markets Authority (CMA) is in charge of implementing the Capital Markets Act (CMA), while the Kenya Information and Communication Act (KICA) is under the purview of the Communications Authority. 

In the past, the Central Bank of Kenya has issued warnings about the risks associated with this digital asset, advising the general public to avoid it.

No law prohibits the usage of cryptocurrencies by residents in the country. However, before any crypto exchange or company can operate in Kenya, it must obtain the appropriate license from the CBK.

Cryptocurrencies classified as securities by the law are under the jurisdiction of the Capital Markets Authority (CMA). Before issuing or selling tokens that resemble securities, the issuing entity must obtain approval from the CMA.

In Conclusion,

  • In Nigeria, residents are not permitted to purchase or sell cryptocurrencies using banking channels. 
  • The Central Bank of Nigeria recently launched a CBDC called e-Naira. 
  • Crypto exchanges and companies are expected to obtain the necessary license before operating in any of the countries mentioned above. 
  • The Islamic community in Egypt considers cryptocurrencies haram.

 

Note: This is not financial or legal advice. Before investing in cryptocurrencies in any country, it is best to verify with the local authorities.

 

If you would like to read more articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, and Instagram.

 

“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools”

Don't miss out!

Subscribe To Our Newsletter

Receive top education news, lesson ideas, teaching tips and more!
Invalid email address
Give it a try. You can unsubscribe at any time.
Thanks for subscribing!
Share72Tweet45Share13
Previous Post

Jay-Z and Jack Dorsey Launch Academy That Offers Free Bitcoin Lessons

Next Post

Bitcoin Withdrawals on Binance Resume After “Temporary” Pause

Rose Nnamdi

Rose Nnamdi

Related Posts

Is Blockchain-as-a-Service the Key to Scalable, Secure, and Strategic Blockchain Adoption?
Articles

Is Blockchain-as-a-Service the Key to Scalable, Secure, and Strategic Blockchain Adoption?

3 June 2025
10 Things You Didn’t Know You Could Buy with Bitcoin
Articles

10 Things You Didn’t Know You Could Buy with Bitcoin

3 June 2025
Address Poisoning Attacks in Crypto: What They Are and How to Stay Safe
Articles

Address Poisoning Attacks in Crypto: What They Are and How to Stay Safe

3 June 2025
What Is a Bull Trap?
Articles

What Is a Bull Trap?

3 June 2025

Featured Posts

Assessing The Impact of China’s Crypto Crackdown

byOlajumoke Oyaleke
19 January 2025
0

Why Are We Trying to Make Bitcoin Like Ethereum? (And Why We Should Not)

byOlajumoke Oyalekeand1 others
3 January 2025
0

Global Crypto Taxation Trends: Supporting Growth or Hindering Innovation?

byOlajumoke Oyaleke
31 December 2024
0

The 10 Worst Crypto Mistakes And How To Avoid Them | DeFi Planet

The 10 Worst Crypto Mistakes And How To Avoid Them

byArjun Chand
26 August 2021
1

A Dive Into The Life Of Meme Coin, DogeCoin | DeFi Planet

From Comic Relief to Crypto Sensation: The Epic Evolution of Dogecoin

byRose Nnamdiand1 others
4 August 2021
0

Read More

Chain of Thoughts

Are Stablecoins Bank Deposits?

Are Stablecoins Bank Deposits?

byOlu Omoyele
31 May 2025
0

...

DAOs and the Coordination of Human Endeavour

DAOs and The Coordination of Human Endeavour

byOlu Omoyele
27 April 2025
0

...

Should DeFi Be Regulated?

Should DeFi Be Regulated?

byOlu Omoyele
27 March 2025
0

...

Is Tokenization All That It’s Cracked Up To Be?

Is Tokenization All That It’s Cracked Up To Be?

byOlu Omoyele
26 February 2025
0

...

Markets Update

Your Weekend Crypto Roundup | May 2025 (Week 5)

3 days ago

Your Weekend Crypto Roundup | May 2025 (Week 4)

2 weeks ago

Your Weekend Crypto Roundup | May 2025 (Week 3)

3 weeks ago

Your Weekend Crypto Roundup | May 2025 (Week 2)

4 weeks ago

Your Weekend Crypto Roundup | May 2025 (Week 1)

1 month ago

Your Weekend Crypto Roundup | April 2025 (Week 4)

1 month ago
Read More

Events

Crypto Valley Conference
Crypto Valley Conference
5 Jun 25
Risch-Rotkreuz

Spotlight

All about Ethereum
All about Algorand
All about Bitcoin
All about Gora

Press Releases

Zircuit Joins Binance Alpha: ZRC Airdrop & Trading Competition Go Live

bychainwire
3 June 2025
0

CoinsBee Surpasses 5,000 Gift Card Brands, Becoming the Largest Crypto Gift Card Platform Worldwide

bychainwire
3 June 2025
0

PrimeXBT expands global reach with FSCA-regulated crypto asset services

bychainwire
2 June 2025
0

Zircuit Enables Non-Custodial Wallet Top-Ups for Crypto.com Visa Cards

bychainwire
30 May 2025
0

Bet20 Launches Premium Casino Platform with Trusted Licensing, Instant Crypto Withdrawals, and Elite Gaming

bychainwire
29 May 2025
0

Read More

ADVERTISING

ABOUT

TEAM

CAREERS

CONTACT

TERMS & CONDITIONS

PRIVACY POLICY

© Copyright 2025 DeFi Planet

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • News
    • People
    • Business
    • Crime
    • Regulation
    • Crypto
    • CBDC
  • Markets
    • Bitcoin
    • Ethereum
    • Stablecoins
    • Altcoins
    • Crypto ETFs
    • Memecoins
  • Policy
  • Articles
    • Press Releases
    • Opinion
    • Explainers
    • Guest Post
    • Sponsored
  • Directory
    • Companies
    • People
    • Products
    • Wallets
  • Multimedia
    • Videos
    • Podcasts
  • Learn
    • DeFi Basics
    • Tutorials
    • Reviews
    • Blockchain Fundamentals
  • Research
    • Case Studies
  • Explore
    • DeFi
    • Crypto Gaming
    • NFT
    • DAO
    • Metaverses
  • Jobs
  • Markets Pro
    • DeFi Planet Pro
    • Spend Crypto
    • Swap Crypto
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer

© Copyright 2024 DeFi Planet   |   Terms & Conditions   |   Privacy Policy

-
00:00
00:00

Queue

Update Required Flash plugin
-
00:00
00:00