International scrutiny reveals that a vast majority of African nations grapple with the enforcement of crypto regulations: FATF

International scrutiny reveals that a vast majority of African nations grapple with the enforcement of crypto regulations: FATF

In the dynamic world of cryptocurrencies, the regulatory landscape across Africa is as diverse as the continent itself. While some countries are actively moving towards formal regulation, others remain in a legal grey zone.

One of the key areas of focus is the implementation of Recommendation 15 (R 15) of the Financial Action Task Force (FATF), which emphasises anti-money laundering (AML) and counter-terrorism financing (CTF) measures for Virtual Asset Service Providers (VASPs).

Country Highlights

Ghana, with an estimated US$3 billion in annual digital asset transactions, is progressing towards formal crypto regulation. The country aims to license crypto platforms by September 2025 to better regulate its digital asset market and stabilise its financial system amid currency volatility. The Bank of Ghana, Securities and Exchange Commission, Financial Intelligence Centre, and Ghana Revenue Authority are collaborating to enforce AML/KYC and taxation rules, marking early steps towards R15 compliance.

South Africa, on the other hand, has a complex regulatory status. In 2025, a High Court ruling declared cryptocurrencies as outside existing Exchange Control Regulations, creating a legal vacuum. The government and financial regulators, including the South African Reserve Bank and Treasury, are engaging to update legislation and implement frameworks to prevent regulatory arbitrage and illicit flows, aligning with R15’s objectives. However, full implementation is still pending.

West African Economic and Monetary Union (WAEMU) countries such as Senegal and Côte d’Ivoire currently lack formal crypto licensing or clear regulations, with crypto activities operating largely informally. However, Benin has enacted Law No. 2024-01 aligned with WAEMU’s anti-money laundering directives, targeting VASPs for authorization and compliance, signalling concrete progress on R15 compliance in part of the region.

Nigeria, a leading crypto adoption hub, has seen significant regulatory evolution. While earlier restricting banks from dealing in crypto, Nigerian authorities are moving towards constructive regulation by drafting licensing and supervision rules for exchanges to ensure consumer protection. This includes efforts to incorporate AML/CFT measures consistent with R15, particularly supervised oversight of Virtual Asset Service Providers, driven by the large volume of crypto usage for remittances and economic diversification.

Regional Context

Many African countries have not yet formalised crypto regulation or licensing systems. There are increasing efforts to introduce AML/KYC compliance frameworks for VASPs, which is core to R15. Regulatory authorities often cooperate regionally or across financial regulatory bodies to harmonise approaches and close legal gaps. The process is ongoing with varying maturity levels, from informal recognition (many countries) to early legal frameworks (Ghana, Benin) to nuanced judicial and legislative developments with pending full adoption (South Africa).

While no African country has fully completed comprehensive implementation of FATF’s R15, there is a clear and growing commitment across the continent towards establishing regulatory and compliance frameworks in line with R15’s AML/CFT standards, especially among countries with high crypto usage and transaction volumes.

South Africa is the only African economy with a relatively advanced digital asset regulatory regime. Compliance with FATF standards can improve African nations' standing in the global financial system. Roughly 57% of all FATF grey-listed countries are African. Effective regulation of cryptocurrencies is crucial for African nations to mitigate money laundering and terrorist financing risks. Approximately 97% of surveyed African countries are either only partially compliant or non-compliant with FATF recommendation 15.

[1] Ghana to license crypto platforms by September 2025 [2] South Africa's Crypto Regulation: A Legal Vacuum and the Need for Updates [3] Crypto Regulations in West Africa: A Comprehensive Overview [4] Ghana's Central Bank and Securities Commission Collaborate on Crypto Regulation [5] Nigeria's Central Bank to Regulate Crypto Exchanges

1. In line with its aim to stabilize the financial system amid currency volatility, Ghana plans to license crypto platforms by September 2025, marking progress towards formal crypto regulation and adherence to anti-money laundering and counter-terrorism financing measures.
2. Despite a High Court ruling declaring cryptocurrencies as outside existing Exchange Control Regulations, South Africa is actively engaged in updating legislation and implementing frameworks to align with the Financial Action Task Force's objectives, although full implementation is still pending.
3. West African countries such as Senegal and Côte d’Ivoire currently lack formal crypto licensing or clear regulations, but Benin has enacted laws aligned with anti-money laundering directives, targeting VASPs for authorization and compliance, providing a significant step towards regional R15 compliance.
4. Ghana's Bank of Ghana, Securities and Exchange Commission, Financial Intelligence Centre, and Ghana Revenue Authority are collaborating to enforce AML/KYC and taxation rules, a move aimed at ensuring compliance with Recommendation 15 of the Financial Action Task Force.
5. Amidst an increasing focus on consumer protection, Nigeria is moving towards constructive crypto regulation, drafting licensing and supervision rules for exchanges that include efforts to incorporate anti-money laundering and counter-terrorism financing measures consistent with R15.

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