{"id":70569,"date":"2022-11-25T09:13:15","date_gmt":"2022-11-25T07:13:15","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=70569"},"modified":"2025-09-08T03:03:22","modified_gmt":"2025-09-08T00:03:22","slug":"imf-urges-tougher-cryptocurrency-regulation-in-africa","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/imf-urges-tougher-cryptocurrency-regulation-in-africa\/","title":{"rendered":"IMF urges tougher cryptocurrency regulation in Africa"},"content":{"rendered":"<p>The International Monetary Fund (IMF)<a href=\"https:\/\/www.imf.org\/en\/Blogs\/Articles\/2022\/11\/22\/africas-growing-crypto-market-needs-better-regulations\"> proposed<\/a> that authorities of African states implement tougher oversight of digital assets to strengthen consumer protections.<\/p>\n<p>As a justification, economists pointed to<a href=\"https:\/\/forklog.com\/en\/news\/ftx-group-files-for-bankruptcy-sam-bankman-fried-resigns-as-ceo\"> the collapse of FTX<\/a> and the associated decline in cryptocurrency prices.<\/p>\n<p>In their view, a balance is needed between minimising risks, which have become evident, and maximising innovation. The adoption of digital assets as legal tender would threaten public finances, experts warned.<\/p>\n<p>The document also states that cryptocurrencies could be used for illicit transfers and violations of capital-flow regulations.<\/p>\n<p>Broad use of digital assets could also undermine the effectiveness of monetary policy, creating risks to financial and macroeconomic stability.<\/p>\n<p>According to the IMF, 25% of Sub-Saharan African countries officially regulate cryptocurrency, while two-thirds have imposed some restrictions.<\/p>\n<p>Cameroon, Ethiopia, Lesotho, Sierra Leone, Tanzania, and the Republic of the Congo have banned cryptocurrencies.<\/p>\n<p>Kenya, Nigeria and South Africa have the largest number of users in the region, economists noted.<\/p>\n<p>Back in 2019, former Twitter chief Jack Dorsey said that Africa would define the future of Bitcoin.<\/p>\n<p>Earlier, KuCoin analysts <a href=\"https:\/\/forklog.com\/en\/news\/kucoin-africas-crypto-transactions-rise-fifteenfold-in-2021\">estimated<\/a> that in 2021 the average number of monthly crypto transactions in the region rose by 1,386.7%.<\/p>\n<p>Experts from Chainalysis <a href=\"https:\/\/forklog.com\/en\/news\/chainalysis-africas-on-chain-transaction-volume-up-13-fold-over-the-year\">assessed<\/a> that the growth of this indicator in Africa from July 2020 to June 2021 was 13-fold.<\/p>\n<p>In April 2022, the Central African Republic<a href=\"https:\/\/forklog.com\/en\/news\/central-african-republic-becomes-the-worlds-second-country-to-legalize-bitcoin\"> made<\/a> Bitcoin legal tender alongside the local franc.<\/p>\n<p>Earlier this was done by the authorities of El Salvador, for which they were repeatedly criticized by the IMF, including in<a href=\"https:\/\/forklog.com\/en\/news\/imf-urges-el-salvador-to-drop-bitcoin-as-legal-tender\"> January this year<\/a>.<\/p>\n<p>Read ForkLog&#8217;s Bitcoin news on our Telegram \u2014 cryptocurrency news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The IMF proposed that authorities of African states implement tougher oversight of digital assets to strengthen consumer protections.<\/p>\n","protected":false},"author":1,"featured_media":70570,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[284,204,36],"class_list":["post-70569","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-africa","tag-imf","tag-regulation"],"aioseo_notices":[],"amp_enabled":true,"views":"21","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/70569","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=70569"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/70569\/revisions"}],"predecessor-version":[{"id":70571,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/70569\/revisions\/70571"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/70570"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=70569"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=70569"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=70569"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}