Cryptocurrency, often hailed as a game-changer for the global financial system, has found both enthusiastic supporters and cautious critics worldwide. While many African countries have embraced the technology and its potential to provide financial inclusion, others have taken a more conservative stance. As concerns around fraud, security, and financial stability grow, several African nations have opted to restrict or outright ban cryptocurrency activities. Here’s a look at some of the key countries that have imposed bans and the reasons behind these decisions.
- Ghana: The Ghanaian government has imposed a full ban on cryptocurrency transactions. As they assess the use of blockchain technology and its potential integration into the nation’s payment infrastructure, the government has reiterated its 2018 ban on the use of cryptocurrencies in all financial activities.
- Algeria: In 2018, the Algerian parliament enacted the Financial Law, which placed limitations on the buying, selling, usage, and ownership of cryptocurrencies.
- Sierra Leone: In 2019, Sierra Leone’s central bank banned two cryptocurrency companies and declined to issue licenses to businesses or financial institutions for accepting deposits related to crypto investments or trading.
- Morocco: In 2017, Morocco’s Ministry of Economy prohibited all cryptocurrency transactions, citing breaches of exchange regulations. However, in 2023, the country’s central bank revealed it was working on new regulations for crypto trading.
- Cameroon: At present, the Bank of Central African States (BEAC), which functions as the central bank for the Central African Economic and Monetary Community (CEMAC), including Cameroon, has not established any regulations for cryptocurrency trading. The government is currently exploring new regulatory frameworks for the industry.
- Egypt: In Egypt, cryptocurrency trading is prohibited under Islamic law. In 2018, the country’s top Islamic authority, Dar al-Iftai, declared Bitcoin transactions haram. Following this, the Central Bank of Egypt announced in 2019 its plan to draft a law prohibiting the creation, trading, or promotion of cryptocurrencies without a proper license.
- Tanzania: While Tanzania does not have a formal regulatory framework for cryptocurrency transactions, its central bank has cautioned against trading and using virtual currencies. The bank emphasized that the Tanzanian Shilling is the only currency legally recognized in the country.
- Republic of Congo: The International Monetary Fund (IMF) reports that the Congolese government has imposed a total ban on cryptocurrencies.Â
Conclusion:Â
While cryptocurrency has been met with enthusiasm in many parts of Africa, several countries have adopted a more cautious or outright prohibitive stance. Governments in countries like Morocco, Algeria, Cameroon, and Egypt have expressed concerns about security, financial stability, and the potential for illegal activities. However, despite these restrictions, many Africans continue to explore the world of digital currencies, often using innovative ways to bypass regulations, showcasing the unstoppable rise of cryptocurrencies on the continent.
As the global financial landscape evolves, it will be interesting to see if these countries reconsider their positions in the future.
