A number of top African financial regulators are asking for decentralized databases that read digital transactions in the need of any central administrator. They are using cryptocurrencies with a wide range of other uses. With cryptocurrencies like bitcoin, they are delivering government assistance and legal claims over land. There is currently no fintech to regulate crypto assets.
South Africa’s introduction to Crypto regulation:
South Africa cryptocurrency regulations are underway and it may become the future of the money. The people who invest in exchanges and cryptocurrency should be threatened as financial service providers. The regulations were proposed when the $135k scams have happened to the people. If there will be regulations in the future – it will reduce the anonymous transactions in cyberspace by creating a framework to see the investments and transactions made by using cryptocurrencies.
The forex exchange market is huge. Their average daily trading volume is more than $5 trillion. It is not well regulated in Africa, which means that the opportunity to get scammed is high. Before anything, the person or the company should become a member of the NFA and register with the CFTC. Commodity Futures Trading Commission is the government agency that manages the options of trading. One of the challenges is to have some kind of regulations in order to help people receive their money back. For example, in the EU there is ESMA (European Security and Markets Authority). And even the whole system is trying to protect traders in order to lower risks, but they are not a crypto regulation system. In order to clarify this argument, bringing an example is important. A relatively recent EagleFX company overview showcases the European regulation perfectly and how it supports clarity. For example, the review mentions that EagleFX is regulated in Dominica, which immediately sends a message to EU traders that it can’t be trusted. However, where it regulated in a country like Cyprus, then it would have legal access to the whole of the continent.
EagleFX is a newly launched company that doesn’t seem to be operating for a long time. It opened last summer of 2019. After the investigation, it is obvious that the identical location was used by a few frauds similar to the EagleFX scam.
Such a thing is also possible with cryptos in Africa and it could possibly prevent many scammed traders in the future.
Why Africa needs international trading:
International trading is allowing countries to connect with each other and expand their markets. The markets are always very competitive and changeable. For example, if political change happens in Asia, this could result in an increased cost of labor.
Over the last past years, Africa has gone from being the hopeless continent to the second most interesting place for market investors and the trading scenes in the global financial markets. The continent has many natural resources including educated young people and more stability in terms of economic growth.
It’s important for them to have Pan-African crypto regulation because the investors are looking forward to safe places there. The people who are investing in trades are sometimes losing their money because of the absence of the regulations and this needs to be changed if Africans would like to expand their financial market even more.
If there are some regulations soon, more investors and young people will be joining the trading scene in order to help the economy of Africa. The young people are very educated and the labor force is very affordable. There is a very high number of people in Africa whose ages are the 20s and 30s with young siblings.
According to the World Economic Forum, in 10 years Africa will relate to the middle of the upper class. So, investing in Africa is a really long-run value investment.
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