From CompliNEWS | Financial Service Intelligence Watch
South Africa emerges as key digital asset hub amid growing crypto adoption in Africa
Africa’s emerging economies are showing significant potential for digital asset adoption, with South Africa leading the charge thanks to its progressive regulatory environment, reports CoinTelegraph. According to Ben Caselin, chief marketing officer of Johannesburg-based crypto exchange VALR, South Africa’s rule of law and ease of setting up businesses make it an ideal entry point for digital asset innovation across the continent.
In 2024, South Africa’s Financial Sector Conduct Authority (FSCA) granted new Crypto Asset Service Provider (CASP) licenses to platforms like VALR, which has raised $55 million in equity funding. The country’s crypto market is expected to reach $332.9 million by 2028, with a compound annual growth rate of 7.86%.
Caselin praised South Africa’s regulatory framework, highlighting that it provides more clarity than most countries in Asia and the United States. However, with increased regulations come higher compliance costs, and VALR has expanded its workforce significantly to meet these demands.
In addition to advancements in crypto, South Africa is also progressing in regulating artificial intelligence, positioning itself as a tech innovation hub. As digital asset platforms like VALR continue to grow, South Africa’s proactive stance on regulation will likely drive further adoption of both blockchain and AI technologies across the region.