Africa Crypto Update Weekly Summary: Nigeria Collaborates with Chainalysis, South Africa Set to Unveil Crypto Framework, Amidst Increasing Stablecoin Adoption

In the latest African crypto update this week, Nigeria’s financial regulatory body is collaborating with the distributed database analysis firm Chainalysis to tackle fraud. In Kenya, the crypto network Honeycoin has successfully secured $4.9 million to enhance its protocol for crypto and fiat transactions. Similarly, in South Africa, the finance minister announced intentions to unveil a crypto asset regulatory framework by the year’s end. The Bank of Ghana is also teaming up with the University of Ghana to advance financial innovation and policy development. On a wider scale, the IMF reported that stablecoin utilization in Africa represents around 6.7% of the continent’s GDP.

Did You Know—South Africa is at the forefront of the crypto movement in Africa with an 18% adoption rate among internet users aged 16-64?

Not only does it hold the title of being the first African nation to recognize cryptocurrencies as financial products, but cities like Johannesburg are also making significant global impacts,… pic.twitter.com/UskwO7n2vA

— Lisk (@LiskHQ) August 28, 2024

Let’s delve into some notable crypto stories capturing the continent’s attention this week:

Nigeria Crypto Update: SEC Collaborates with Chainalysis to Tackle Fraud

The Nigerian Securities and Exchange Commission (SEC) has formed a strategic alliance with the distributed database firm Chainalysis to address crypto asset fraud within the nation.

At an event titled “Combating Scams with Blockchain Intelligence,” SEC Director General Emomotimi Agama confirmed the collaboration.

Chainalysis is well-known for its blockchain analytics capabilities, serving as an essential tool for tracking fraudulent activities.

Nigeria is actively pursuing strategic alliance with the distributed ledger sector following a rocky relationship over the last couple of years.

This collaboration illustrates the country’s intent to foster a favorable atmosphere for digital currency, while simultaneously addressing fraud-related consumer security issues that have arisen recently.

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South Africa Crypto Update: Central Bank to Unveil Crypto Regulatory Framework

The Finance Minister of South Africa, Enoch Godongwana, has disclosed plans for the South African Reserve Bank (SARB) to unveil a regulatory framework this year focusing on BTC ▼-0.66% and digital currency enterprises.

According to Godongwana, the forthcoming framework will provide guidance to crypto service providers in the nation, outlining conditions, reporting, and administrative obligations, among other details.

The aim of this framework is to close loopholes and limit illicit funds’ entry into the crypto space, a process that could be facilitated by crypto firms acting on behalf of clients, some of whom invest in the best cryptos to buy.

Since December 2022, there have been advancements. The finance minister highlighted that crypto service providers in South Africa are now regarded as accountable institutions under the Financial Intelligence Centre Act (FICA) and must comply with AML regulations.

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Kenya Crypto Update: Honeycoin Secures $4.9 Million for Stablecoin Initiatives

Kenyan crypto startup Honeycoin has garnered $4.9 million in a seed funding round aimed at accelerating the development of its stablecoin-compatible payment solution.

Founded in 2020 by David Nandwa, Honeycoin specializes in integrating fiat systems with blockchain technology. The platform has seen significant growth, processing over $100 million in transaction volumes every month and extending its operations to more than 40 nations.

Commenting on the funding, Nandwa emphasized the company’s vision:

“Our aim is to create the operating system for money, encompassing how it is transferred, stored, and collected, regardless of medium or location. Much like how Apple revolutionized computing and Visa changed global trade, we believe financial infrastructure is currently undergoing another transformative evolution.”

This funding round was spearheaded by Flourish Ventures, with participation from Visa Ventures and TLcom Capital. Honeycoin expects that this capital injection will allow for swift scaling and optimal leveraging of regional distributed record capabilities.

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Ghana Crypto Update: University of Ghana Collaborates with Central Bank

The Bank of Ghana (BoG) has formed a collaboration with the University of Ghana to enhance economic research, financial innovation, and policy development.

In an official statement, the central bank indicated plans to create a Chair in Finance and Economics to further the aims of this partnership.

Currently, Professor Yegandi Alagidede holds the position of Bank of Ghana Chair in Finance and Economics.

Dr. Johnson Asiama, the Governor of the central bank, remarked that the chair will play a vital role in shaping the nation’s financial framework. Furthermore, the chair will expedite the bridging of the gap between policy and academic research while mentoring the next generation of policymakers and economists.

Additionally, this strategic alliance aims to focus on developing the e-Cedi, a central bank crypto asset (CBDC) whose pilot program was launched as part of the Digital Ghana Agenda.

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Africa Crypto Update: Stablecoin Activity in Africa Reaches 6.7% of GDP According to IMF

The International Monetary Fund (IMF) has reported that stablecoin activity in Africa has surged to 6.7% of the continent’s GDP in 2024.

This value signifies one of the highest regional ratios worldwide, although the continent still falls short compared to North America and Asia in overall transaction volumes.

(Source: IMF)

The IMF noted that Africa and the Middle East accounted for $200 billion in stablecoin transactions in 2024. USDT and USDC are favored stablecoins in this context, attributed to their established credibility and connection to the USD, the prevailing global reserve currency.

These statistics emphasize how the continent is outperforming expectations in the crypto domain. While it may lag in various economic aspects, Africa’s crypto engagement is on the rise. Most importantly, an increasing number of people are exploring some of the best meme coin ICOs.

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The post Africa Crypto Announcement Week in Review: Nigeria Partners with Chainalysis, South Africa to Release Crypto Framework, as Stablecoin Adoption Rises appeared first on 99Bitcoins.