Majority of African Nations Grapple with Cryptocurrency Regulatory Challenges: FATF
In recent years, Africa has been making significant strides in regulating cryptocurrencies, with an increasing focus on adhering to the Financial Action Task Force (FATF) recommendations, particularly Recommendation 15. This recommendation targets the regulation of Virtual Asset Service Providers (VASPs) to combat money laundering and terrorist financing.
Several African countries are formalizing crypto regulations to comply with these international standards.
Ghana, for instance, is set to begin licensing crypto exchanges by September 2025. With a substantial domestic crypto user base (approximately 17% of the population), the Bank of Ghana has issued draft guidelines focusing on licensing, consumer protection, anti-money laundering (AML) measures, and transparency. These measures align with FATF’s emphasis on VASPs being registered, reporting suspicious transactions, and maintaining security standards to prevent illicit financial flows.
Nigeria has also made strides in crypto regulation. The country has legally recognized crypto assets as securities under the Investment and Securities Act (2025), creating a formal regulatory framework with specific AML and counter-terrorism financing (CTF) rules for crypto firms. The Nigerian Securities and Exchange Commission (SEC) is implementing rules scheduled for mid-2025 requiring all providers serving Nigerian residents to be licensed and supervised accordingly.
Benin, under the WAEMU regional framework, passed legislation in early 2024 that includes VASP authorization and compliance with AML rules consistent with FATF guidelines. This reflects early steps toward harmonizing crypto oversight across West African countries.
Other West African Economic and Monetary Union (WAEMU) countries, such as Senegal and Côte d’Ivoire, remain in a legal grey zone with no explicit crypto laws yet. However, the regional Central Bank (BCEAO) has tightened financial regulations focusing on AML, indicating that these countries are expected to develop crypto legislation aligned with regional and FATF standards in the near future.
South Africa, too, is focusing regulatory attention on crypto assets. The country initially declared crypto as a financial product in 2022 and has granted crypto 138 licenses as of June 30, 2024. South Africa is currently the only African economy with a relatively advanced digital asset regulatory regime.
Effective regulation is crucial to mitigate money laundering and terrorist financing risks associated with cryptocurrencies. The progressive regulation of cryptocurrencies in Africa not only aligns with FATF Recommendation 15's aims but also has the potential to improve the standing of African nations in the global financial system.
References:
[1] Bank of Ghana (2025). Draft Guidelines on Digital Currency Exchanges and Issuers. [2] Financial Action Task Force (2024). Mutual Evaluation Report: Benin. [3] Financial Action Task Force (2025). Mutual Evaluation Report: Ghana. [4] Nigerian Securities and Exchange Commission (2025). Guidelines for Issuance and Listing of Blockchain Offerings in Nigeria. [5] South African Reserve Bank (2025). Crypto Assets Regulation and Compliance Conference.
- Ghana will begin licensing cryptocurrency exchanges in September 2025, with regulations focused on licensing, consumer protection, anti-money laundering measures, and transparency.
- Nigeria has legally recognized digital assets as securities under the Investment and Securities Act (2025), establishing a formal regulatory framework with specific anti-money laundering and counter-terrorism financing rules for crypto firms.
- Benin's legislation from early 2024 includes the authorization of Virtual Asset Service Providers and compliance with anti-money laundering rules consistent with FATF guidelines.
- South Africa has granted crypto 138 licenses as of June 30, 2024, making it the only African economy with a relatively advanced digital asset regulatory regime.
- Several West African Economic and Monetary Union (WAEMU) countries such as Senegal and Côte d’Ivoire, are yet to have explicit crypto laws, but the regional Central Bank (BCEAO) has tightened financial regulations, suggesting the development of crypto legislation aligned with regional and FATF standards in the near future.
