Africa has always been eyed by many emerging industries seeking to gain more users and adoption. The continent is not only the second most populous but also the second largest, making it very attractive for businesses and industries.
While crypto adoption has spread like wildfire in other continents like Europe and Asia, it has been slower in Africa. It seems the industry is now just realizing the potential in Africa for crypto.
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In a recent interview, Ben Caselin, the Chief Marketing Officer of VALR, a crypto exchange based in Johannesburg, South Africa, revealed that Africa might just be what Crypto needs to gain the mass adoption it has always sought.
According to the VALR CMO, the cost of staying compliant with crypto regulation for many crypto exchanges has increased with the increasing clarity in crypto regulation. In addition, he mentioned that many emerging economies across Africa have the potential to become digital asset hubs, which is good for crypto.
He gave South Africa as an example, calling it “the entryway to the rest of Africa”. According to him, the country operates a good system of the rule of law and has an independent judiciary. He also believes opening a company in South Africa is very easy.
South Africa’s recent history does look promising for crypto companies. This April, South Africa’s Financial Sector Conduct Authority (FSCA) granted Category I and II CASP licenses to VALR, which raised $55 million in equity funding from Pantera Capital and Coinbase Ventures, among others.
The South African cryptocurrency market is also highly encouraging. According to a Statista report, the market will likely reach $246 million in 2024 and grow to $332.9 million by 2028, with a 7.86% annual growth rate.
Crypto regulation in South Africa also seems very positive toward more crypto companies. On March 12, the FSCA approved 59 crypto platform licenses under the country’s existing law, with 262 applications still in consideration.
South Africa was also the first African country to license crypto exchanges, and in 2021, South African lawmakers even explored a separate regulatory framework for crypto.
Caselin also revealed the FSCA's dedication to ensuring legal crypto activities in the country. The FSCA has not just only recently established its regulatory framework for Crypto Asset Service Providers, it is also requiring on-site visits to ensure compliance.
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Caselin believes good things are still coming as the FSCA’s regime matures. He praised the regime, calling it one of the best regulatory regimes in the world alongside Dubai and confirming that it provides more regulatory clarity than most Asian countries and even more than the United States.
HODL Team
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