⚡️Crypto regulations are coming to key African markets THREAD
⬇️ What follows explains why I expect a shift in balance in crypto transactions - from decentralized 🔜 centralized - backed by findings
⬇️ What follows explains why I expect a shift in balance in crypto transactions - from decentralized 🔜 centralized - backed by findings
❌ In the past 5 - 7 years, banking and mobile money gateway restrictions stifled certain crypto business models at the benefit of others 
🚀 P2p emerged the winner, reaping all the benefits of Central Bank sanctions. Volumes for Africa moved to Paxful, localbitcoins, binance p2p and others as a gateway into bitcoin and stablecoins.
@chainalysis cited Africa as the fastest p2p growing region 🌍
“105.6 billion worth of crypto assets between July 2020 and June 2021, accounting for 1,200% crypto value growth”
“105.6 billion worth of crypto assets between July 2020 and June 2021, accounting for 1,200% crypto value growth”
The history of this shift to growth in p2p crypto volumes due to central bank restrictions is documented on this thread 🧵
https://twitter.com/pesa_africa/status/1357938874845175809
🏁Therefore, up and coming regulation (abroad and Africa specific) will tilt the balance in favor of integrations with regulated financial infrastructure such as mobile money, telcos, bank accounts, capital markets...
❓What should we expect after regulations?
- banks and telcos come in?
- partnerships btwn startups/ banks?
- compliant business models?
- banks and telcos come in?
- partnerships btwn startups/ banks?
- compliant business models?
I have curated some examples from the last 2 weeks on impending regulations (circa 2022)
🇿🇦South Africa regulations coming 2022
🇿🇦South Africa regulations coming 2022
https://twitter.com/theblock__/status/1469348908505739264?s=21
🇳🇬 Nigeria regulations coming 2022
https://twitter.com/pesa_africa/status/1469602356522270724?s=20
🇰🇪Kenya regulations coming 2022 (Kenya seems to model South Africa)
https://twitter.com/pesa_africa/status/1421069509746696193?s=21
🇺🇬 Uganda is one of the handful of African countries (and Mauritius 🇲🇺) that accommodates crypto in existing regulations
https://twitter.com/pesa_africa/status/1339071354507759616
👑 Binance CEO @cz_binance talks up Africa and impending crypto regulations (reads like positioning for 2022. Binance has operations in East and West Africa)
https://twitter.com/foundersffa/status/1468466608947568641?s=21
The International Monetary Fund is pushing for global crypto asset regulations (I worry Africa markets may miss an opportunity to shape regulations for country context)
https://twitter.com/pesa_africa/status/1469600542334885902?s=20
🔮Expect to see regulations inform where to go to market for certain crypto businesses
For example
- Chipper cash launching crypto product in Uganda 🇺🇬
- Chipper cash & FTX Africa & Binance launch in South Africa 🇿🇦
For example
- Chipper cash launching crypto product in Uganda 🇺🇬
- Chipper cash & FTX Africa & Binance launch in South Africa 🇿🇦
🚨Regulation is a fork on the road IMO. It shapes which models can be built and have a shot at success in the market
https://twitter.com/pesa_africa/status/1425836077185703940?s=21
The End.
See you next time. please reply with your feedback/comments/ critique.
See you next time. please reply with your feedback/comments/ critique.
Bonus
🔎 Someone observed more African startups coming up into the crypto-sphere. I agree with 💯. This trend will only continue
some research required here on the models of up and rising startups
🔎 Someone observed more African startups coming up into the crypto-sphere. I agree with 💯. This trend will only continue
some research required here on the models of up and rising startups
https://twitter.com/dzidzoh/status/1469898227671613443?s=21
2️⃣ 4 Roles by @fonbnk1 linkedin.com/posts/fonbnk_u…
🥳 some personal news
- I joined Chris and Sergey at fonbnk as advisor
- My 1 month anniversary at Founders Factory Africa
- I joined Chris and Sergey at fonbnk as advisor
- My 1 month anniversary at Founders Factory Africa
💡Check out my best picks of African crypto product and feature ideas from @TheDFSLab blockchain hackathon
https://twitter.com/pesa_africa/status/1469610627102556161
I will publish this thread as a post on my substack
Hoping to do this on the regular for my most lucid thoughts
Hoping to do this on the regular for my most lucid thoughts
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