Although regulators around the world remain sceptical about recognising virtual currencies as legal tender, cryptocurrencies are already an established phenomenon and are here to stay.
In Africa, the acceptance of these currencies has varied from jurisdiction to jurisdiction, but there is a general trend towards regulating their use. Of recent, there have been positive signs in countries such as Kenya, Mauritius, South Africa, Tanzania, Uganda and Zambia.
Mauritius, for example, has issued a number of regulatory statements that will likely accelerate the acceptance of cryptocurrencies as legal tender in the country. Most recently, South Africa has declared crypto assets as ’financial products’ and made them subject to regulation.
As far as cryptocurrencies are concerned, the question now is not whether or not cryptocurrencies should be allowed to exist, but rather, what are the appropriate regulatory approaches that ought to be adopted to be effective? On that premise, we are expecting that there will be an increase in legislation and regulation of the sector.
Click here to download a guide highlighting developments in Kenya, Mauritius, South Africa, Tanzania, Uganda and Zambia.
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Read the original publication at Bowmans.