Crypto’s positive and negative sides were on full display. Nigeria had a crackdown on cybercriminals in crypto, while Kenyan and South African entrepreneurs are making moves in anticipation of what the next year brings.
Meanwhile, in Ethiopia, regulators now accept crypto, but not as legal tender.
Let’s look at this week’s developments:
Nigeria Crypto News: Hundreds Arrested Over Romance Scam
Crypto has an ugly side, and Africa has its fair share of opportunists looking for a quick payday. According to reports, 792 people were arrested this week by Nigerian Authorities as a crypto scam operation unraveled. The suspects, who included many foreign nationals, would lure their victims through romance before tricking them into investing in crypto.
Cryptocurrency is an especially popular tool for scammers because its transactions are irreversible and outside the financial mainstream. Nigeria is one of the global hotspots of cybercrime in the internet era. The phenomenon of “Yahoo Boys” was an especially prevalent problem in the 2000s.
Now, it appears a good number of these scammers have taken their activities to the crypto scene. Netizens and crypto enthusiasts must remain vigilant to ensure the good name of this sector is not soiled.
Kenya Crypto News: Bitcoin Mining and Rural Electrification
Bitcoin mining has often received backlash from climate activists, partly because the process is power-intensive. However, mining can contribute to electrification drives in some parts of rural Africa, where there is low electricity connectivity.
Kenyan entrepreneur Janet Maingi is seeking to boost adoption rates in Kenya, Malawi, and Zambia. She co-founded Gridless, a mining company that aims to mine Bitcoin profitably while boosting electrification in the countries it operates in.
Mining can incentivize the building of more power generation points, especially from clean sources, while boosting the local community. Such initiatives can change the narrative around mining crypto in the long term.
South Africa Crypto News: Expect Growth in 2025
Crypto platform leaders in South Africa are predicting a strong start to 2025. This optimism comes after Bitcoin crossed the psychological milestone of $100,000 in 2024.
Farzam Ehsani of VALR and Luno manager SA manager Christo de Wit shared their optimism when speaking to Admire Moyo of ITweb News. They took note of South African regulators issuing licenses to dozens of crypto service providers and the positive markets closing in 2024. Besides, the election of a perceived crypto-friendly administration in the US should help ensure the bullish market carries over into the new year.
Ethiopia Crypto News: Mining Supported, Not Crypto Transactions
Ethiopia is pro-crypto mining and currently hosts several data centers dedicated to mining Bitcoin. However, in a recent proclamation, the National Bank of Ethiopia Governor, Mamo Mahretu, stated that crypto cannot be used to make payments or transactions.
As it is, while the country remains supportive of crypto, especially in fortifying its infrastructure, it is not ready to accept Bitcoin, for instance, as money, following the likes of El Salvador. Violators, the governor continued, would face imprisonment and fines.
While the position can be viewed as retrogressive, the governor said the decision is part of their effort to modernize its financial regulations and, most importantly, safeguard its economy.
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