With crypto adoption on the rise across the African continent since the beginning of 2020, users are on their toes over the type of crypto regulations that would hit the crypto community.
Using data from statistical surveys carried out, Africa is presently showing good signs when it comes to crypto adoption since the beginning of this year. Notably, the region has now placed second in the number of Peer-to-peer trades carried out with two countries in the region making the top eight crypto adoption index list which was compiled by Chainalysis.
However, financial regulators across the region are now aware if activities going on in the crypto community, which might prompt a quick response of implementing crypto regulations.
Crypto regulations might hinder the progress of crypto adoption in Africa
Nigeria is presently leading major African countries as it boasts of trading volumes between $5-$10 million weekly. Kenya is currently trying to catch up with Nigeria, as it has been posting weekly trade volumes of around $2 million, while South Africa is showing positive signs too.
A representative of Paxful noted that Africa had witnessed tremendous growth to rank ahead of other continents as its strongest trading region. Meanwhile, the representative was quick to note that countries like Ghana and Cameroon have also witnessed small growths. If crypto regulations are to be enforced, it may limit the active participation in the region drastically.
The exclusivity of financial houses are pushing people to crypto, Luno GM Africa says
Crypto exchanges have also witnessed a high rate of activities on their platforms with Luno, confirming that about $549 million was traded in a combined effort between Nigeria and South Africa last month. Furthermore, the digital asset exchange platform has also seen new user signups increase up to about 122% since the end of last year.
Marius Reitz, the general manager in Luno’s African office, said the exclusivity of the financial houses had driven the majority of the citizens around Africa to crypto. Another angle to the crypto adoption rush is aside from the lack of crypto regulations, the ease of sending funds home through crypto in a bid to avoid the high fees that come with making payments in banks.