African countries are in no hurry to regulate cryptocurrencies

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African countries are in no hurry to regulate cryptocurrencies

Governments prefer to learn from the mistakes of others and not to act as pioneers of the digital economy.

According to the report, financial institutions, Ecobank, which serves 39 countries in West and Central Africa, the local authorities want to control crypto currencies, but no one wants to initiate this issue and to develop appropriate legislation.

Most African regulators took expectant position, hoping that the neighbors will be the first to introduce norms and rules for digital assets, on the basis of which you can build your own policy.

Authorities fear that the citizens can get involved in cryptocurrency investment, and the possible consequences of the fall of the market can affect the economic condition of a particular country. This is one of the reasons for a skeptical attitude to the legalization of crypto-currencies on the African continent.

According to Ecobank, 21 of the 39 African countries had not expressed an official position regarding digital money.

Three countries clearly expressed their attitude: Namibia has banned cryptocurrencies, and South Africa and Swaziland took the liberal side in relation to bitcoin and altcoins, but not legalized them completely.

The remaining 15 countries were treated vague statements, largely abandoning direct regulation and warning citizens about risky investments in digital assets.

Also, experts Ecobank noted that the discussion of the rapid rise and fall of cryptocurrency drowned out more important discussion about the potential benefits that it can bring people new technology:

The transforming power that lies in the tokenization products and blockchain services, comparable to the transformative effect of the Internet. Using cryptotokens and currency users can make instant and free cross-border transactions with digital identities, and compliance with KYC policy, which will increase the demand for services and will change the way of interaction with governments and financial institutions.

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