South Africa is positioning itself as the most friendly crypto country for digital assets, as seen from its proactive approach in creating a regulatory environment for digital assets and fostering crypto firms.
The country stands out as an entry point into the African market, offering a strong rule of law and regulatory clarity, which appeals to investors and crypto exchanges.
South Africa has emerged as a leader in crypto regulation following the issuance of Crypto Asset Service Provider (CASP) licenses by the Financial Sector Conduct Authority (FSCA).
Also, SARS—South African Revenue Service is reportedly using artificial intelligence (AI) to track traders who are not complying with the regulations. Furthermore, the South African Reserve Bank (SARB) has set certain rules regarding how individuals and businesses can invest in digital assets.
Moreover, in late August, Nigeria’s Securities and Exchange Commission (SEC) said it has granted an Approval-in-Principle to two crypto exchanges Quidax and Busha, giving them the status of legally recognised crypto trading platforms in the country.
But, even with the regulatory approval license, there are still unclear regulations as to individuals who engage in crypto transactions who are reportedly tagged fraudsters by regulators.
Moreso, in July, in an email sent to all Nigerian users on KuCoin, the email states that trading on p2p and other type of trades will attract additional crypto tax of 7.5% VAT to be paid in transaction fees which will be sent to the Nigerian government.
Beyond Cryptocurrencies
Beyond cryptocurrencies, South Africa and Nigeria are also positioning themselves as prominent player in blockchain-based payment settlement, cross-border trade, and artificial intelligence. This can be seen in the Solana-based marketplace AgriDex, which facilitated agricultural cross-border trade between a South African farmer and a London importer, charging only 0.15% from both sides.
Also, we can see the adoption of the Zone blockchain POS settlement service by NIBSS—Nigeria Inter-Bank Settlement System. NIBSS integrated the Zone’s blockchain, enabling Payment Terminal Service Aggregator (PTSA) functions. As a result, institutions on Zone’s network, including Nigerian banks like Zenith, First Bank, and UBA bank, can directly transact with each other, bypassing traditional card transaction routing through merchant and cardholder banks.
With revenue predicted to reach $332.9 million by 2028, South Africa’s crypto market is expected to experience significant growth. If this happens, it will solidify the country as a critical digital economy player in Africa and globally.
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