The International Monetary Fund has advocated for tighter regulation of crypto markets in Africa in light of the recent collapse of FTX and the current legal case against its former CEO, Sam Bankman-Fried.
According to IMF data, 25% of sub-Saharan African nations have explicitly regulated cryptocurrency, while two-thirds have put in place certain limitations. The most users in the region are in Kenya, Nigeria, and South Africa.
According to statistics from analytics company Chainalysis, the value of the African cryptocurrency market surged by more than 1,200% between July 2020 and June 2021, with significant adoption in Kenya, South Africa, Nigeria, and Tanzania. In the meanwhile, cryptocurrency investors have lost $116 billion to the bear market and the wave of bankruptcies that have engulfed the market in 2022, Forbes stated in its recent report.
