For international businesses entering Africa's emerging commercial landscape, the diverse regulations, licensing systems, and compliance requirements across countries often form a labyrinth. A single misstep can lead to frozen funds, hefty fines, or even reputational damage. African regulators are increasingly stringent on KYC/AML requirements for large transactions. Collaborating with unlicensed counterparties or anonymous P2P platforms exposes companies to enforcement actions and fund reversals. Quidax's crypto OTC onboarding process includes:
Automated global sanctions screening;
Continuous transaction monitoring;
Comprehensive customer due diligence.
This culminates in an institutional-grade compliance framework fully aligned with global highest standards, ensuring every dollar or stablecoin transaction leaves an immutable on-chain audit trail, ready for internal or external scrutiny.
Many African nations enforce strict forex controls and fund repatriation rules, often creating regulatory deadlocks in cross-border settlements. Quidax's direct fiat corridors and local-currency-pegged stablecoin pairs—Nigerian Naira (NGN), South African Rand (ZAR), Ethiopian Birr (ETB)—fully comply with central bank and securities commission guidelines. This pan-African licensing model ensures corporate settlements avoid disruptions from unexpected freezes or seizures.
Treating Cryptocurrency as a Regulated Digital Asset
The overarching regulatory trend classifies cryptocurrencies as "virtual or digital assets" (akin to real estate) subject to taxation. The U.S., UK, and Canada follow this approach: the IRS has declared that general tax principles for property apply equally to crypto assets. South Africa and Nigeria have proposed similar frameworks under Virtual Asset Service Provider (VASP) regulations.
However, grappling with high volatility and decentralization, most governments seek equilibrium between "risk control" and "innovation promotion." Data shows only a quarter of sub-Saharan African nations have formal crypto regulations.
Despite slow progress, Africa's hardline stance on crypto is shifting. Currently, ~70% of African countries maintain "neutral" or "uncertain" policy positions on cryptocurrency.
Nigeria
As one of Africa's largest crypto-holding nations, Nigeria's regulatory environment long remained ambiguous. In 2017 and 2021, the Central Bank of Nigeria (CBN) banned formal financial institutions from crypto transactions (spurring P2P trading). Meanwhile, Nigeria's SEC studied the market, launching the Securities Regulation Innovation Program (SRIP) in 2021 and issuing Digital Asset Rules in 2022. In 2023, CBN released VASP Guidelines, maintaining the ban on direct crypto transactions by financial institutions while permitting settlement services. In 2024, SEC introduced the Accelerated Regulatory Incubation Program (ARIP) framework, granting Approval-in-Principle to Quidax and Busha.
South Africa
On October 19, 2022, South Africa's Financial Sector Conduct Authority (FSCA) classified "crypto assets" as financial products under Section 1(h) of the Financial Advisory and Intermediary Services (FAIS) Act. Building on a November 2020 proposal, this mandates licensing and transaction reporting for crypto service providers. Since June 2023, FSCA has licensed 59 crypto firms.
Kenya
Like others, Kenya's crypto stance is evolving. In December 2024, its National Treasury released draft National Policy on Virtual Assets & Virtual Asset Service Providers and VASP Bill, stating: "This policy aims to create a fair, competitive, and stable market for VAs/VASPs in Kenya." The documents outline licensing, consumer protection, and cybersecurity frameworks for VA activities and VASPs. The government opened these drafts for public consultation until January 2025.
Egypt
In 2018, Egypt's top Islamic legislative body issued a fatwa declaring Bitcoin-related commerce "haram" (forbidden under Sharia), reiterated in January 2021 with no protections for crypto-related losses.
The Central Bank and Banking System Law (No. 194 of 2020) prohibits crypto issuance, trading, or promotion without prior CBE approval. Article 206 prescribes severe penalties, including fines and imprisonment, for unauthorized crypto activities.
Central African Republic
On April 22, 2022, CAR's parliament passed a law adopting cryptocurrency as legal tender alongside the CFA franc (CEMAC's official currency). However, as a CEMAC member, CAR's monetary sovereignty lies with BEAC, which declared the law "void" for violating regional agreements. In February 2025, CAR launched a meme coin in defiance.
Other Nations
While Ethiopia cautiously opens its economy to digital competition, rising mining activity and adoption pressure a policy rethink. Tunisia, Senegal, and Sierra Leone remain silent/neutral, with no crypto laws. Tunisia's finance minister acknowledged revisiting criminalization of crypto traders. North Africa imposes harsher bans: Egypt, Algeria, and Libya fully prohibit crypto. In 2024, Morocco and Ghana published draft crypto regulatory guidelines.
