Crypto regulation, taxation and increasing popularity: a sneak peek at last week’s new crypto-related updates in Africa

Discussions centered in the crypto world are always trending. and if we train our attention to everything that has been happening inside the African crypto bubble, there is always a lot to follow up with. This week, we are still following the impacts of CAR’s decision to legalize the use of bitcoins in the country. These are the key news pieces we found to share with our community.

The Central African Republic has quickly moved on toward entering a new sphere of the crypto world shortly after bitcoin was officially legalized in the country. This week, President Faustin Touadera announced on his official Twitter account that the country is preparing to launch a new national-wide crypto initiative called Sango. The new investment platform was named after CAR’s second official language and will be supported by the government and CAR’s National Assembly. It is expected that Sango will boost bitcoin adoption inside the Central African Republic and will bring many possibilities of economic growth that can positively impact the quality of life of CAR’s citizens. Touadera is positive about the use of crypto tools to reshape CAR’s economic reality and hopes that the potential of projects like Sango can serve as an example for other African nations walking in the same direction.

Central African Republic to launch official crypto hub ‘Sango’

More exciting news came from the official report published by the Swiss blockchain firm Crypto Valley Venture Capital. According to their official data, funding for African blockchain startups surpassed investment in other venture fundings. In the first quarter of 2022, the amount raised in the industry reached more than $90 million, which represents a growth of almost 150% compared to the first quarter of 2021. Furthermore, the report predicts that within a couple of years, more venture investors will target the African market, which is likely to strengthen even more the scenario for crypto startups to keep exploring possibilities inside the African continent. Currently, Nigeria is the economy with the highest growth rate (almost 40%), with 18 companies acting in the country. The second one in the ranking is Seychelles (26%), with four venture capital startups. The rates look promising for African businesses willing to enter the market using blockchain technology and represent a faster shortcut for them to grow and work on innovative solutions and technologies that can positively impact the continent.

Venture funding for African crypto startups grew 11x in 2022: Report

And as crypto attracts worldwide attention to Africa, the continent currently occupies a frontline position among other nations working toward solidifying crypto assets as part of their economic framework. As Africa keeps demonstrating interest in the crypto world and has no intention of stopping crypto adoption, the South African Revenue Service (SARS)  is now prompted to establish solid rules to tax crypto coins, as it claims that cryptocurrencies do not align with their tax-free regulatory conformities. As crypto assets are likely to fall into the mire of governmental regulations, many questions have been raised regarding the new to pay for this kind of financial solution. As a national revenue service, SARS does have the power to create laws to regulate crypto sales and investments and will keep an eye on how the way citizen administer their financial assets can affect the interests of the national economy as a whole. Since SARS keeps updated data regarding crypto transactions, it is likely that the regulations will be accompanied by many particularities applied to exchange providers, buyers, and last-minute transactions. Despite how fair these regulations will be, a crypto-tax-free jurisdiction.

Why Cryptocurrency Taxation Might Become a Reality in Africa

Despite the shortcomings imposed by the ups and downs of crypto regulation throughout the African continent, last week, the president of Equity Group Holding, Kenya’s biggest lending company, James Mwangi, put forward an opinion that is likely to impact the way African citizens interact with crypto adoption. Mwangi stated that cryptocurrencies are extremely useful to supplement mobile money in Africa, especially if lenders can educate regulators about the potential and worth of blockchain technology. His opinion goes against the views of many central banks in Africa, as the majority of them still do not advocate crypto use and banned the practice in some countries. Furthermore, Mwangi points out that it is evident that mobile money transactions are more popular than paper currency in Kenya, which is another reason to consider the benefits of crypto technology as a way to complement and add more security and stability to this trend.

Kenyan Financial CEO: Crypto Could Enhance Mobile Money

As we enter a new month in the calendar, we can only wonder what will unfold inside the crypto world of Africa. Some news might give a direction, but the ups and downs of the market are always surprising. Keep following our official channels to get weekly updates of crypto-related news straight out of the African continent. We are committed to gathering only the best content to keep you informed!