According to a blog post published by a global organization on November 22, the International Monetary Fund (IMF) advocates for greater regulation of crypto exchanges in Africa, which is one of the markets with the highest growth rate in the world.

The FTX collapse and the subsequent effect it had on cryptocurrency prices is “spurring new calls for greater consumer protection and regulation of the cryptocurrency industry.” According to the International Monetary Fund (IMF), one of the reasons why countries in the region should adopt the regulation. The IMF cited this as one of the reasons why countries in the region should adopt the regulation.

Furthermore, the authors state that “the risks of crypto assets are self-evident” and that “it is time to regulate” to strike a balance between avoiding risk and making the most of innovation.

The article, which is based on the October 2022 Regional Economic Outlook for Sub-Saharan Africa, warns that “the risks are much higher if cryptocurrencies are adopted as legal tender,” posing a danger to public finances if governments accept cryptocurrencies as a form of payment.

According to statistics provided by the IMF, only a quarter of the nations located in sub-Saharan Africa have explicitly controlled cryptocurrencies, while the remaining two-thirds have adopted certain limitations.

On the other hand, Cameroon, Ethiopia, Lesotho, Sierra Leone, Tanzania and the Republic of Congo have already banned the use of crypto assets. This represents twenty percent of the nations that are in the sub-Saharan region.

The highest concentrations of users can be found in the countries of Kenya, Nigeria and South Africa.

According to statistics provided by analytics firm Chainalysis, the value of the African cryptocurrency market increased by more than 1,200% between July 2020 and June 2021. The growth was mainly driven by increased adoption in Kenya, South Africa, Nigeria, and Tanzania. .

According to a Cointelegraph report, Ghana is conducting tests for a digital currency that would be issued by the central bank (CBDC).

In Chainalysis’ Global Crypto Acceptance Index, Kenya and Nigeria ranked 11th and 19th respectively. Ghana has the potential to reach levels of cryptocurrency adoption comparable to Kenya and Nigeria.