As global crypto fraud surges 48%, African platforms must prepare for stricter compliance, rising user expectations, and security challenges, according to the State of the Crypto Industry 2025 report by Sumsub.
Key Insights
Fraud Rates: Nigeria leads with an 8.3% fraud rate, followed by Uganda, Kenya, and Tanzania (4.8%).
Verification Efficiency: Nigeria has the fastest non-doc verification time (3s) but lags in document-based verification (27s).
User Onboarding: Document-free verification has boosted onboarding success to 93.39% and cut verification time by 46% globally.
Regulatory Challenges & Compliance Gaps
60% of crypto companies anticipate tighter regulations in 2025.
Only 29% fully comply with the Travel Rule (FATF Recommendation 16), which mandates transparency in crypto transactions.
South Africa will enact the Travel Rule for crypto service providers in April 2025 under its new Anti-Money Laundering Bill.
The Path Forward
Experts stress the need for AI-powered fraud detection, biometric security, and proactive regulatory compliance to safeguard platforms and users.
“Africa’s growing adoption of crypto brings challenges, but staying ahead in security and compliance is key to long-term success,” says Hannes Bezuidenhout, VP at Sumsub.
With regulatory shifts and evolving fraud tactics, African crypto platforms must adapt quickly or risk penalties and loss of user trust.
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