The broader African cryptocurrency market continues to show promise, with Bitcoin (BTC) trading at approximately $113,006, marking a 0.14% increase over the past 24 hours. Ethereum (ETH) is priced around $4,196, reflecting a slight 0.31% gain.
Other prominent cryptocurrencies like Binance Coin (BNB), Cardano (ADA), and Solana (SOL) are also experiencing minor fluctuations. These price movements highlight the continued volatility of the crypto market, underscoring the need for cautious investment and regulatory oversight as the sector matures.
As the cryptocurrency market continues to experience explosive growth worldwide, African countries are taking diverse approaches to digital currencies, with some opting for outright bans due to concerns over financial stability, consumer protection, and the potential for illicit activities.
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Among the African nations imposing restrictions on cryptocurrency use, six countries stand out for implementing firm bans that make it illegal to trade, hold, or use cryptocurrencies in any form.
These nations include Ethiopia, Morocco, Lesotho, the Republic of Congo, Sierra Leone, Cameroon, and Tanzania.
Ethiopia’s Prohibition: Curbing Financial Instability
In Ethiopia, the central bank has issued clear directives against the use of cryptocurrencies, citing concerns over financial instability and the lack of consumer protection. The Ethiopian government has also raised alarms about the potential for cryptocurrencies to be used in money laundering activities and the financing of illicit trade. The growing popularity of digital currencies in the country has led to increased interest from tech-savvy youths seeking alternative investment options. However, the government views the unregulated nature of the market as a significant threat to economic stability, prompting the country’s harsh stance on crypto.
Morocco Maintains Strict Stands
Morocco has maintained a strict stance against cryptocurrencies. The purchase, sale, use, and holding of virtual currencies are prohibited, with violations subject to penalties under existing laws since 2017.
However, a shift is underway, with Morocco’s central bank, Bank Al-Maghrib, finalising a draft law to legalise and regulate cryptocurrencies as of July 2025, moving away from the 2017 ban.
The proposed law aims to establish consumer protections, financial security measures, and a supportive framework for digital assets while also fostering innovation within the fintech sector.
Lesotho: A Regional Restriction
Lesotho, a small landlocked country in Southern Africa, also follows the trend of prohibiting cryptocurrency use.
The government, in alignment with regional financial regulations, has placed restrictions on the use of digital currencies, fearing that they could be used for unauthorised financial transactions and undermine the formal banking sector.
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While the country lacks a detailed regulatory framework for cryptocurrencies, the central bank has made it clear that digital currencies do not have legal tender status, reinforcing the ban.
Republic of Congo: Safeguarding Financial Systems
The Republic of Congo has taken similar measures by banning cryptocurrency activities, and the central bank has warned citizens about the risks associated with unregulated digital assets.
The government’s decision to impose such a ban comes from concerns that cryptocurrencies could destabilise the country’s financial systems and facilitate illicit money flows.
As with other countries, the government have been wary of the rise in crypto usage, which they believe could undermine national financial policies.
Sierra Leone: Legal Prohibition
In Sierra Leone, the government has enacted laws that explicitly make cryptocurrency transactions illegal.
The government’s move to ban crypto comes at a time when the country is struggling with economic instability and high inflation. Cryptocurrency, often seen as a hedge against inflation, had gained popularity, but the government viewed this trend with concern.
The legal prohibition aims to protect the country’s economy and prevent the risks posed by digital currencies, including fraud and financial crimes.
Cameroon: Concerns Over Financial Stability
Cameroon has also introduced a ban on cryptocurrency activities, including trading, mining, and the use of digital assets for payments. The government’s primary concern is the protection of its financial stability, as digital currencies operate outside the control of the central bank and can potentially undermine the formal financial system. The ban is part of broader efforts to safeguard the financial sector from disruptions caused by unregulated crypto transactions.
Tanzania: A Directive Against Digital Assets
In Tanzania, the central bank has issued a directive prohibiting the use of cryptocurrencies, emphasising that digital assets pose risks to financial security and can be used for fraudulent activities.
The government has actively warned citizens against investing in cryptocurrencies, arguing that the market lacks proper oversight, which could lead to scams and financial losses.
The ban reflects Tanzania’s cautious approach to emerging technologies and its reluctance to embrace cryptocurrencies without clear regulatory measures in place.
The Future of Cryptocurrencies in Africa
The ban on cryptocurrencies in these seven African countries underscores a significant divergence in the approach to digital currencies across the continent. While some nations are adopting regulatory frameworks to integrate cryptocurrencies into their economies, others remain highly cautious, fearing financial instability, fraud, and the lack of consumer protection.
As Africa grapples with the global rise of digital assets, it remains to be seen whether these countries will reconsider their positions or whether the push for regulation will lead to a more balanced and open approach to crypto in the future. Regardless, the debate surrounding cryptocurrencies will continue to evolve, with governments carefully weighing the risks and rewards of embracing the digital financial revolution.
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Experts across Africa are increasingly recognising the transformative potential of cryptocurrency adoption, particularly in addressing financial inclusion, economic empowerment, and regional development. While acknowledging the associated risks, many advocate for a balanced approach that leverages the benefits of digital assets.
Cryptocurrencies offer an alternative for the unbanked and underbanked populations in Africa. AfriBit Africa’s co-founder, Ronnie Mdawida, emphasises that digital currencies enable individuals without traditional banking access to participate in the financial system. In Nairobi’s Kibera slum, for instance, residents are utilising Bitcoin for transactions, bypassing the need for bank accounts.
Sunday Michael Ogwu is a Nigerian journalist and editor of Pinnacle Daily. He is known for his work in business and economic reporting. He has held editorial roles in prominent Nigerian media outlets, where he has focused on economic policy, financial markets, and developmental issues affecting Nigeria and Africa more broadly.
