[2018-08-11] African Regulators Taking ‘Wait-and-See’ Approach on Cryptocurrency

[ivanpoldark]

African countries want to regulate cryptocurrency, but hardly any one wants to take the lead in responding to the meteoric rise of this technology and asset class.

That’s according to a new report from the Togo-based Ecobank, the leading independent regional banking group that serves nearly 40 countries in West and Central Africa.

The report, which examined the regulatory response to cryptocurrencies in the 39 sub-Saharan countries, found that regulators in most jurisdictions are taking a “wait-and-see” approach, hoping that they can learn from the mistakes of their neighbors before they take action themselves.

“African countries appear to be looking to their neighbours to regulate and innovate first, and learn from their mistakes, rather than being the first mover,” the bank said. “African governments worry that if its citizens become overexposed to cryptocurrency investments, the repercussions of a future crash could be felt in the broader economy, hence their scepticism of licensing their use.”

Of the 39 regulatory regimes surveyed, more than half — 21 countries — had yet to make a public stance on cryptocurrency.

Read more: https://www.ccn.com/african-regulators-taking-wait-and-see-approach-on-cryptocurrency-ecobank-report/

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[Kakmakr]

This is not entirely true, because South Africa and Nigeria has taken some pretty great strides into regulating and taxing Crypto currency in their countries. I have a lot of friends that are living in these countries and their governments are leaders in this continent. Africa also had M-Pesa long before Bitcoin existed, so they are familiar with digital currencies.

Let's give credit, where credit is due. 

[gentlemand]

I would be gaily piling in if I were the average African government. It's not as if they have much to thank the conventional banking system for.

[Kprawn]

I would be gaily piling in if I were the average African government. It's not as if they have much to thank the conventional banking system for.

Ok, let's take a step back and analyse what the Banks and governments did to African countries. How do you make someone

your slave? You give them large amounts of money with interest for infrastructure projects and you make sure they

cannot get out of that debt. This is what most first world countries are doing with third world countries and the Banking system

is a key player in the game. The debt is held over them like a sword and they cannot build their economy, so they stay your

slave.     Can Bitcoin change this scenario? {NO}   What can Bitcoin change for them? ....Well, Bitcoin can make it cheaper

for people from third world countries, that are living and working in first world countries to send more money home and to

pump more money into their local country and community. 

[cryptofonia]

the same approach wait and see is everywhere

[hugeblack]

Unfortunately, African countries will not declare any sort of regulation of these currencies until a decision by the world's first countries, as the report said.

Bitcoin recipient countries/groups will turn a blind eye to these transactions in an attempt to recover some of the tax gains from it, as in South Africa[1] and Nigeria[2].

I do not think that using these currencies will benefit the African economy as the volatility of the bitcoin price cannot afford, especially for the poor.

The use of blockchain technology and the promotion of transparency will contribute significantly as corruption is one of the main reasons behind the failure of those countries.

[1] How much money South Africans made and lost in Bitcoin
[2] Nigeria Finds Bitcoin is a Way to Hedge Against its Naira