Report: Digital Assets Regulation in Africa

In recent times, Africa has emerged as a global leader in the adoption of Stablecoins and digital assets. This emergence is majorly driven by practical, day-to-day transaction needs like hedging funds against inflation in a volatile currency environment and reducing cash transfer friction, especially internationally.

With over 54 million people owning digital assets on the continent and Sub-Saharan Africa reporting the highest rate of Stablecoin adoption globally at 9.3%, the proliferation of digital assets is undeniable. In Nigeria alone, nearly half that figure is accounted for, with 25.9 million users and a penetration rate of 11.9%, making the country the second-largest adopter of digital assets worldwide.

Beyond individual users, businesses and institutions are increasingly integrating digital assets into their operations. More customers can make payments with digital assets instead of local currency, resulting in accelerated financial access, increased investments, and innovation. 

In response, African regulators are stepping up. From Nigeria to South Africa, relevant authorities are taking much-needed steps to adapt to the changing financial landscape, including reversing prior bans, establishing regulatory sandboxes and issuing draft legislation.

The diversity of these regulatory strategies reflects both the complexities and opportunities embedded in the continent’s evolving financial landscape. As the frameworks become more solid, digital asset adoption is expected to surge while increasing investor confidence and utilising foreign policy influence from countries like the USA.

Some countries are also exploring Central Bank Digital Currencies (CBDCs) as a more controlled alternative to decentralised assets. The aim of this approach is to strengthen financial inclusion, stabilise monetary policy and improve regulatory compliance.

As Africa continues to shape its digital finance future, businesses operating across the region, as well as those who wish to enter, must stay informed, agile and engaged to be carried along on the waves of Africa’s digital finance evolution.

If you are interested in learning more about the insights shared in this article, read our full report on Digital Asset Regulations in Africa.
[Read the full report]