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The cryptocurrency market in Africa is showing some growth, and the first regulatory questions are already emerging. After the collapse of FTX and all the ensuing consequences, the urgent need to regulate the sector became even more urgent. However, regulating such a volatile industry as virtual currencies remains a real challenge. Especially since thenCurrently In Africa, only 25% of countries formally regulate digital currencies.
African Cryptocurrency Market: Finally Real Regulation?
Care must be taken because the second exchange in the world in terms of trading volume is in a shameful position. The FTX bankruptcy Precipitated the decline in price bitcoin and some alternative currencies As important as Ethereum. Inevitably, given the proportions assumed by this bankruptcy, the time has come Real organization in Africa.
The Cryptocurrency market in Africa is the fastest growing in the world, according to String analysis. However, it is still where the number of transactions is the lowest. While countries such as Nigeria, Kenya and especially South Africa are leading the way and showing a certain consistency in their desire to regulate the sector, many other countries, on the other hand, are continuingEncryption ban. In this registry are countries like Cameroon, Lesotho, Congo, and the Democratic Republic of the Congo, to name a few.
African governments fear the impact Crypto volatilitybecause it cannot be used as Stores of value. On the other hand, central banks may no longer have a monopoly on money. What can really hurt Monetary policy And somehow give up financial stability.
Although some countries are adopting cryptocurrencies, they are doing so individually in defiance of society’s judgments. The most striking case of this disparity in cryptocurrency regulation is CAR adoption for bitcoin as an official currency. By deciding to regulate bitcoins and thus cryptocurrencies, CAR has alienated the Central African Economic and Monetary Community (CEMAC). In fact, the CEMAC treaty officially prohibits the adoption of a currency other than the CFA franc. Likewise, all cryptocurrency transactions within the sub-region are strictly prohibited.
conclusion
Crypto continues to democratize the African continent. The African crypto market is growing faster than any other market in the world. However, the issue of regulations is still pending, despite recent events calling for more caution.
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A PhD student in financial law and an experienced SEO web editor, Cédrick Aimé is passionate about cryptocurrency, trading, etc. He naturally participates thanks to his articles in the daily blockchain revolution in order to better democratize DeFi.