From Risks to Regulation: How South Africa Emerged as the Continental Crypto Leader

The Republic of South Africa is emerging as a major player in the continent’s cryptocurrency ecosystem. According to estimates by Statista, the industry revenue in the country is set to reach $615.5 million this year, with projections indicating a rise to $637.9 million by 2026.

Unlike other regions where digital assets have gained traction due to economic turmoil, the increase in South Africa is driven by clear regulations, an advanced infrastructure, and strategic adoption of the technology.

Approximately 10% of South Africa’s population, or around six million individuals, have already adopted or utilized cryptocurrencies. Awareness of digital assets among adults is impressively high at 98%.

The majority of users are young adults aged between 18 and 44 with higher education and moderate income levels. The primary motivations for investing in cryptocurrencies include hedging against inflation, accessing global finance, and a belief in technology as the future of money.

Stablecoins are becoming more favored than Bitcoin for everyday tasks such as savings and cross-border transfers. Chainalysis reports that 43% of trading volume in Sub-Saharan African nations involves stablecoins.

Local users employ them as a means to hedge against risks associated with the national currency. Companies like OVEX and SentiPay have launched stablecoins ZARP and ZARC, pegged to the South African rand.

In 2022, the South African authorities recognized cryptocurrencies as financial products, bringing their activities under the oversight of the Financial Sector Conduct Authority (FSCA), the country’s financial regulator.

By mid-2024, the FSCA had granted licenses to 138 crypto asset service providers (CASPs). All licensed companies are required to register with the Financial Intelligence Center to comply with anti-money laundering (AML) regulations.

Starting from April 2025, a «Travel Rule» will require CASPs to gather information about senders and recipients during crypto transactions exceeding 5,000 rand (approximately $280 at the time of writing). This legislation aligns South Africa with global standards set by the Financial Action Task Force (FATF).

With regulatory clarity in place, banks are beginning to pay attention to the market. Absa Bank has expressed interest in cross-border payments using stablecoins, while the exchange VALR is already catering to corporate and institutional clients.

Ghana’s central bank is working towards finalizing a comprehensive regulatory framework for crypto platforms, with plans to present it to Parliament by September 2025. The authors of the initiative believe this represents a significant shift towards broader adoption of digital assets.

Central Bank Governor Johnson Asiamah stated that the proposed legislation will allow the country to «license companies, promote cross-border trade, attract strategic investments, and gather essential financial data.»

This initiative responds to the increasing use of cryptocurrencies among Ghana’s 33 million citizens, with around 3 million already engaging with digital currencies, according to Bloomberg.

From July 2023 to June 2024, the volume of crypto transactions in Ghana reached $3 billion, indicating substantial economic activity outside traditional banking systems. Authorities acknowledged a delayed response, as many economic agents were already transacting in cryptocurrencies beyond regulatory oversight.

Nigeria has already established a comprehensive regulatory framework for digital assets and stablecoins under the 2025 Investment and Securities Act, positioning itself as a leader in Africa’s crypto ecosystem.

The country’s Securities and Exchange Commission (SEC) now classifies virtual assets, cryptocurrencies, and tokens as securities, granting it explicit authority to regulate the sector. SEC chief Emomotimi Agama emphasized the agency’s focus on «responsible innovations» that ensure market stability and consumer protection.

New regulations require stablecoin issuers to maintain verifiable reserves, undergo regular audits, and comply with AML and Know Your Customer (KYC) protocols. Foreign Virtual Asset Service Providers (VASPs) must establish mutual recognition agreements with their national regulators.

This policy shift signifies a move away from previous enforcement actions, such as lawsuits against Binance, toward a strategy of integrating digital assets into the country’s financial ecosystem.

Previously, authorities blamed Binance for local currency fluctuations and arrested two of its executives in 2024: the director for West and East Africa, Nadim Anjarwalla, and the vice president of global intelligence and investigations, Tigran Gambaryan. The latter spent eight months in a correctional facility in Kuje, Abuja, after which all charges against him were dropped.

Under the new strategy, the SEC has already granted preliminary approvals for local firms Busha Digital Limited and Quidax Technologies Limited.