Leading the Future: African Countries Where Cryptocurrency is Legal

Africa’s cryptocurrency market is transforming at lightning speed, with several nations moving from caution to clear legal frameworks for digital assets.

Ghana is on track to roll out its first comprehensive cryptocurrency regulations by September 2025, as adoption surges nationwide. The Bank of Ghana (BoG) will present the Virtual Asset Providers Act to Parliament, setting out licensing rules for platforms and paving the way to integrate cryptocurrency into the formal financial system.

According to the BoG Governor, Dr Johnson Asiama, the legislation will help Ghana gather reliable data, monitor capital flows, and improve monetary policy. Around three (3) million Ghanaians now use cryptocurrency for payments, remittances, and business transactions, contributing to an estimated three billion US dollars in transactions between July 2023 and June 2024.

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The bill will also introduce consumer safeguards, anti-money laundering measures, and tax obligations for virtual asset providers. This approach aims to protect users while tightening oversight in the face of fraud risks and currency volatility.

As adoption accelerates across Africa, more governments are realising that the future of finance requires rules that encourage innovation while protecting the public. Below is a snapshot of countries that have fully legalised cryptocurrency and others making bold moves towards regulation.

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Mauritius stands as a leading example of successful cryptocurrency regulation in Africa. The nation introduced the Virtual Asset and Initial Token Offering Services Act 2021, creating a robust legal framework aligned with Financial Action Task Force (FATF) standards.

The Financial Services Commission (FSC) licenses Virtual Asset Service Providers, with updated rules introduced in early 2024. DeFi and staking platforms are required to hold VASP licences and comply with strict transparency measures.

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Stablecoin issuers must maintain one-to-one fiat reserves in Mauritian bank accounts, verified through quarterly independent audits. Annual cybersecurity audits are mandatory for all VASPs, and enhanced anti-money laundering and counter-terrorist financing rules will take effect in March 2025.

Reports from 2024 indicate that Mauritius’ crypto sector now contributes around two per cent to national GDP, with registered digital asset businesses growing by 40 per cent since regulation began. More than 60 per cent of local businesses are either using or exploring blockchain adoption.

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South Africa has emerged as a major player in cryptocurrency regulation. In 2024, the Financial Sector Conduct Authority (FSCA) licensed 248 cryptocurrency firms, reinforcing the country’s reputation for structured oversight. South Africa operates numerous licensed exchanges, has a clear legal framework, and ranks among the top countries globally for cryptocurrency adoption.

In 2022, the Central African Republic became the first African country and the second in the world after El Salvador to adopt Bitcoin as legal tender. While the move was groundbreaking, implementation challenges continue to slow progress.

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Nigeria has become one of Africa’s leading cryptocurrency success stories, transforming its approach from strict bans to full legal recognition. The landmark Investments and Securities Act (ISA) 2025 officially classifies cryptocurrencies and other virtual assets as securities, enabling their legal use under the direct regulation of the Securities and Exchange Commission (SEC).

This shift is remarkable given the country’s earlier position. In 2021, the Central Bank of Nigeria banned commercial banks from processing cryptocurrency transactions. Now, while banks are still prohibited from holding or trading virtual assets for their own accounts, they can open cryptocurrency accounts for customers under new central bank guidelines. This regulatory clarity signals a move from prohibition to structured oversight.

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Namibia has made significant strides by passing the Virtual Assets Act 10 of 2023, reversing its 2017 ban on cryptocurrency exchanges. Several crypto firms have been granted provisional licences, and detailed regulatory measures are expected in the near future.

Rwanda is drafting licensing rules for Virtual Asset Service Providers and is also piloting a Central Bank Digital Currency (CBDC) to complement private cryptocurrency regulation.

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Ghana’s Virtual Asset Providers Act will introduce licensing for cryptocurrency exchanges and create a comprehensive regulatory framework, with a clear implementation target of September 2025.

Africa’s cryptocurrency market is diverse, with countries advancing at different speeds. Key drivers for legalisation include improving financial inclusion, enabling cost-effective cross-border payments, and attracting fintech investment. However, challenges remain in harmonising regulations, building technical infrastructure, safeguarding consumers, and aligning with global compliance standards.

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With Mauritius, South Africa, and the Central African Republic leading the way, more African nations are expected to legalise cryptocurrency in the coming years. Namibia, Rwanda, and Ghana are moving steadily towards comprehensive frameworks, positioning Africa as an increasingly influential force in the global cryptocurrency economy.