One report puts Nigeria “as the top peer-to-peer bitcoin trading nation on the continent” with $99 million in trade volumes in the first quarter 2021 while volumes for Kenya and Ghana–in second and third ranking–came in at $34.8 million and $27.4 million respectively.
That situation is widespread across Africa, the United Nations noted in its Africa Renewal magazine this month, emphasizing that “given the constantly changing nature of the cryptocurrency world, one of the biggest risks is lack of proper regulation” in some African countries.
South Africa, which has the most sophisticated financial sector on the continent, is walking a different path, sensing an impending boom in crypto trade in the country and on the African continent, financial and capital markets said.
Daily crypto asset trading values in South Africa were “exceeding $145 million for the first time” in January 2021, according to a report from the working group.
Despite these moves, South Africa still plans on limiting the exposure of banks and other financial institutions to crypto assets ”as the risk could over time spill over” and create financial stability risks, according to the new regulatory framework.