The regulatory environment for stablecoins in Africa is undergoing significant transformations, particularly in Nigeria and Kenya. As these countries adapt to the growing influence of digital assets, the implications for the market and users are becoming increasingly pronounced. The source reports that these changes could lead to a more structured and secure framework for digital currencies in the region.
Nigeria Lifts Banking Ban on Virtual Asset Service Providers
In Nigeria, the Central Bank has recently lifted its banking ban on virtual asset service providers, signaling a potential shift towards a more accommodating regulatory framework. However, the recent crackdowns on certain trading practices have raised concerns among stakeholders about the sustainability of peer-to-peer (P2P) trading in the country.
Kenya's New Digital Asset Tax Approach
On the other hand, Kenya has made notable changes to its approach to digital assets by introducing a digital asset tax. This tax has since been repealed and replaced with an excise duty on fees charged by virtual asset providers, reflecting a more structured approach to taxation in the sector. These developments highlight a broader trend of increasing regulation and scrutiny of stablecoin operations across the African continent.
