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Business

Morocco Proposes Legislation For Cryptocurrency Regulation

The Governor of the Moroccan central bank “Bank Al-Maghrib (BAM)” Abdellatif Jouahri, announced in Rabat on Tuesday that Morocco is in the process of drafting a bill to regulate crypto assets, aligning with the recommendations from the recent G20 Summit.

Jouahri highlighted that the primary aim of this legislation is to bring Moroccan regulations in line with international standards for crypto assets. This move is designed with a meticulous approach, intending to safeguard investors and ensure the stability of the financial system. He conveyed this during a press briefing following the conclusion of the BAM Board’s fourth quarterly meeting for 2023.

BAM is actively advancing its initiatives concerning the National Currency of the Central Bank (MNBC), with a dedicated working group collaborating closely with technical experts and the International Monetary Fund (IMF) on this endeavor, Jouahri explained.

A current report under review at BAM focuses on the potential utilization of MNBC to enhance financial inclusion, a pivotal aspect for developing nations. Jouahri emphasized the potential of MNBC in enhancing traceability, reducing transaction costs, and streamlining transaction times.

Additionally, Jouahri revealed Morocco’s contemplation of the next phase in the dirham currency reform, allowing for increased fluctuation against the Euro and the Dollar. He outlined the bank’s plan to allocate 8% of its hard currency reserve to finance environmentally friendly projects. He also projected that by 2024 and 2025, foreign exchange reserves would cover 5 months and 16 days of imports.

In the meeting, the central bank opted to maintain its key rate at 3% amid a context of decreasing inflation and improved growth rates.

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Business

Circle And Fuze Collaborate To Drive USDC Adoption In Africa And The Middle East

Circle Internet Financial, a major global financial technology company, and Fuze, a regulated digital asset infrastructure provider in the United Arab Emirates (UAE), have established a strategic partnership. Their aim is to encourage the widespread use of USDC, Circle’s stablecoin pegged to the US dollar, across the Middle East and Africa (MENA) regions.

This collaboration is focused on elevating the utilization of USDC among a broader spectrum of clients in MENA, including banks, fintech firms, traditional enterprises, and Web3 corporations. The Memorandum of Understanding (MoU) signed by Circle and Fuze outlines their joint efforts in this direction.

Mohammed Ali Yusuf, co-founder and CEO of Fuze, highlighted the shared ambitions between Fuze and Circle. He emphasized their mutual goal of constructing digital asset infrastructure to offer more efficient financial services, fostering interconnected and inclusive economies. Yusuf expressed enthusiasm about the collaboration’s potential to influence the course of finance.

Fuze has played a significant role in advancing digital asset infrastructure in the region. Founded by Mo Ali Yusuf (CEO), Srijan Shetty (CTO), and Arpit Mehta (COO), the company has swiftly acquired substantial initial capital, robust regulatory frameworks, and necessary licenses. This marks a pivotal moment in the startup scene for digital assets in the Middle East and North Africa. Fuze remains dedicated to accelerating product deployment and expansion in cooperation with local and regional regulatory bodies.

Miriam Kiwan, Vice President of MENA at Circle, provided additional insights in a UNLOCK Blockchain interview. She emphasized the organization’s objective of facilitating seamless asset transfers to drive global economic advancement. Kiwan highlighted the UAE’s significance as a remittance market, with an 89% foreign population, stating that USDC, leveraging blockchain technology, is well-positioned for cross-border business transactions and individual remittances.

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Business

Nigeria Leads Africa In Cryptocurrency Adoption Despite Regulatory Challenges

Despite directives from the Central Bank of Nigeria (CBN) restraining licensed banks from involvement in cryptocurrency activities, Nigeria’s crypto market has persisted and solidified its position as a crucial transactional platform in sub-Saharan Africa.

With a population of 223 million, Nigeria stands as one of Africa’s fastest-growing nations and boasts one of the youngest demographics globally, with 43% of its populace under the age of 15, as highlighted in a study by the United Nations and Interest.

Nigeria maintains the highest cryptocurrency usage in Africa and stands among the most advanced countries worldwide, displaying an annual growth rate of 9%, as per a Chainalysis report, despite recent fluctuations in Bitcoin interest. The report places Nigeria third among six countries with sustained growth since 2021.

Stablecoins have emerged as the preferred crypto assets in Nigeria due to their ties to the US dollar, serving as a hedge against inflation and the devaluation of the naira. Presently, USDT holds the top position as the most extensively traded stablecoin in Nigeria.

Businesses within Nigeria and its diaspora have increasingly adopted USDT and other stablecoins for facilitating transactions. It’s becoming commonplace for Nigerian tour operators to quote package prices in US dollars and offer USDT as a payment alternative.

The naira, Africa’s worst-performing currency, has experienced an 80% devaluation against the US dollar this year alone.

Despite recent price retractions, Bitcoin has concluded the year on a robust note. If today marked the end of 2023, the leading digital asset would have seen an almost 150% increase, marking its most impressive performance since 2020 when it soared by an exceptional 305%.

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Business

Brazil Surpasses Nigeria In Bitcoin Interest As Nigerian Interest Shifts To USDT

In the realm of Bitcoin interest, Brazil has taken the lead, surpassing Africa’s largest economy. Presently, the top spot globally is held by El Salvador, with Brazil securing second place and Nigeria sliding to third, according to data from Google Trends.

The surge in Bitcoin interest within Latin America’s most populous country, Brazil, has been notably propelled by the entry of Itau Unibanco, the country’s largest private bank, into the cryptocurrency space. Initially providing crypto trading services for Bitcoin and Ether, Itau Unibanco’s expansion into digital assets stems from recent cryptocurrency regulation developments within Brazil.

This entry of the tier-1 bank into Brazil’s crypto market directly pits it against local players like Mynt and global behemoths like Binance. What distinguishes Itau Unibanco is its dual role as both a trading platform and custodian for digital assets.

The political sphere in Brazil has also responded to this burgeoning interest. President Luiz Inacio Lula da Silva recently signed a law imposing taxes on crypto assets held abroad by Brazilian citizens.

Despite Nigeria’s Central Bank restricting licensed banks from engaging in cryptocurrency-related activities over two years ago to curb unregulated transactions, Nigeria’s crypto market has persisted. However, it’s gradually losing ground to more crypto-friendly nations such as the UK, UAE, and now Brazil.

Nigeria, with a population of 223 million, remains one of Africa’s fastest-growing countries and one of the world’s youngest populations, with 43% under the age of 15, according to a United Nations study.

While Nigeria’s cryptocurrency usage remains the highest in Africa and continues to develop at an annual rate of 9%, recent data suggests a shift. Chainalysis reported that Nigeria ranks third among only six countries showing consistent growth since 2021, indicating a steady rise despite the recent dip in Bitcoin interest.

Stablecoins, particularly USDT, have emerged as the favored crypto asset in Nigeria due to their peg to the American dollar, offering a hedge against inflation and the devaluation of the naira. Consequently, USDT stands as the most widely traded stablecoin in Nigeria.

Businesses in Nigeria, along with the diaspora population, are increasingly adopting USDT and other stablecoins for payments. It’s becoming customary to find tour operators quoting their packages in US dollars and offering USDT as a payment option.

The Nigerian naira, Africa’s worst-performing currency, has seen a drastic 80% depreciation against the dollar just this year.

While Bitcoin faced recent price pullbacks, it closed the year with a strong performance, marking nearly 150% returns if today were the year’s end, making it the best year since its exceptional 305% surge in 2020.

At the moment, Bitcoin trades slightly above $41,000, while Ether maintains a critical support level above $2,100 despite recent sell-offs.

Data from Coinglass indicates significant activity in the crypto futures market, with $176 million liquidated in the past day, $136 million of which involved long positions. A total of $32 million in Bitcoin positions were liquidated, resulting in 91,645 traders losing their funds. The largest single liquidation order worth $10 million occurred on Bitmex for XBTUSD.

Despite Bitcoin’s current correction phase, end-of-year forecasts for 2024-2025 remain positive, especially compared to last year’s bleak predictions of $10-12k for Bitcoin.

There’s also anticipation in the market regarding the approval of spot Bitcoin ETFs in the United States, with expectations that liquidity inflows will significantly impact the value of the pioneering crypto asset.

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Social Good

Coinbase Shuts Down Givecrypto Initiative

Coinbase, the prominent cryptocurrency exchange listed on Nasdaq under COIN, has declared the closure of its Givecrypto initiative, a nonprofit project originally funded by CEO Brian Armstrong to provide cryptocurrency aid. In the announcement, Coinbase stated:

“Despite the positive impact observed, we were unable to instigate lasting change solely through unconditional cash transfers. Givecrypto, a charitable program under Coinbase aimed at ‘enhancing global economic freedom,’ has prompted us to reconsider our approach.”

Introduced by Armstrong in June 2018, Givecrypto aimed to empower individuals financially by globally distributing cryptocurrency, particularly focusing on those in emerging markets amidst financial crises. However, a Fortune article from September 2022 shed light on how Coinbase’s $1 billion crypto philanthropy goals resulted in disappointment and left workers in limbo.

The recent announcement from Coinbase elaborates on Givecrypto’s journey:

“Over the years, Givecrypto successfully distributed cryptocurrency to numerous individuals in need, showing short-term improvements in their situations. Additionally, it highlighted the ease of transferring small sums of money across borders directly to recipients, bypassing intermediaries.”

“Regrettably, we couldn’t achieve sustained positive changes with recipients, as they reverted to their initial state after the aid concluded,” emphasized the cryptocurrency firm.

Coinbase revealed that the remaining Givecrypto funds will be redirected to Brink and Givedirectly. The exchange clarified, “Brink focuses on enhancing Bitcoin’s software and protocol, while Givedirectly is better equipped to ensure that crypto donations reach those most in need, fostering sustained benefits.”

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Business

Buycoins, Nigerian Crypto P2P Platform, Closes Buycoins Pro

Buycoins, a Nigerian peer-to-peer crypto marketplace, recently announced the closure of one of its services, Buycoins Pro. The Bitcoin exchange sent out a communication to its users confirming the decision to ‘sunset Buycoins Pro.’ The official statement mentioned the gradual phasing out of this vertical in the upcoming days.

During this transition, Buycoins assures users that asset withdrawals will remain accessible for the next three months. Additionally, traders can continue utilising Buycoins’ Over-the-Counter (OTC) service through Desk.

The company expressed gratitude for users’ understanding and cooperation during this period of change. Acknowledging the inconvenience such changes may cause, Buycoins reaffirmed its commitment to assisting users for a smooth transition. They also thanked the Buycoins Pro community for their valuable feedback, engagement, and support, which significantly contributed to shaping the platform. Users were encouraged to reach out to the support team at support@buycoins.africa for any queries or assistance.

Originally launched as a single app in 2017, Buycoins later evolved into Basic and Pro versions. The former facilitated buying, selling, and investing in digital assets, while the Pro version—recently shut down—catered to advanced technical traders. Notably, the Basic version was rebranded as Accrue in October of the previous year following Buycoins’ acquisition of Accrue, which remains active.

Buycoins’ journey began as Bitkoin in 2017, founded by Timi Ajiboye, Ire Aderinokun, and Tomiwa Lasebikan, with the aim of providing Nigerians a secure and convenient platform for buying, selling, and storing cryptocurrencies.

In 2021, Buycoins, along with its products (including Accrue), became part of a new parent company called Helicarrier. During the rebranding in October 2021, Helicarrier comprised five products: Buycoins for buying, selling, and storing cryptocurrencies; Pro for advanced crypto traders with diverse currency pairs and trading tools; Sendcash for crypto-powered remittance; Sendcash Pay, offering developers tools for borderless payment integration; and NGNT (Nigerian Naira Token), a digital currency backed by the Naira.

The African crypto space has witnessed challenges over the past year and a half. Several startups in the industry faced shutdowns, staff layoffs, restructuring, and other adverse developments. Notable African-focused crypto companies such as LazerPay, Nestcoin, Paxful, Patricia, among others, encountered difficulties in their operations.

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Opinions

Surge In Phishing Attacks In Kenya By 32% In Q3 2023, Reports Kaspersky

Kenya has emerged as a focal point for cyber threats in Africa, as indicated by findings from Kaspersky, a leading computer security firm.

In the third quarter of 2023, Kaspersky reported a 32% increase in detected phishing attacks in Kenya compared to the previous quarter (Q2 2023) and a 12% rise compared to the same period in 2022. Phishing attacks involve deceptive strategies aimed at coaxing individuals into revealing sensitive information like login credentials, financial data, or personal details.

Moreover, Kenya accounted for 12% of the recorded attacks on Internet of Things (IoT) devices across the African region during this period. Additionally, Kaspersky highlighted that 32% of Industrial Control System (ICS) computers in Africa experienced attacks, with Kenya’s ICS machines being targeted in 28% of cases. Globally, malicious objects were identified on 25% of ICS machines during this timeframe. Given that Industrial Control Systems oversee crucial industrial processes, attacks on these systems pose severe consequences, intensifying concerns over their security.

Bethwel Opil, Enterprise Client Lead at Kaspersky in Africa, emphasized, “In projecting the cyberthreat landscape for 2024, we anticipate a dynamic shift characterized by an increase in state-sponsored cyber-attacks, with ‘hacktivism’ becoming a common aspect of cyber-warfare.”

Opil further stated, “The widespread availability of generative AI is expected to drive a surge in spear-phishing tactics, while the inventive exploitation of vulnerabilities in mobile and IoT devices will escalate. Businesses need to proactively combat these cyber threats by leveraging advanced technologies such as threat feeds, security information and event management systems, endpoint detection and response solutions, and tools incorporating digital forensics and incident response features.”

Kaspersky recommends implementing more robust security measures, especially for organizations. These measures encompass regular cyber skill assessments for employees, consistent software updates, and the utilization of dedicated IoT gateways to ensure inherent security and data transfer reliability.

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Opinions

Ghana Ranks 9th In Global Cryptocurrency Ownership Out Of 27 Countries

Finder.com’s latest Cryptocurrency Adoption Index revealed Ghana’s significant position as the 9th country out of 27 in terms of cryptocurrency ownership. Among 27 nations surveyed, Vietnam led with 29% ownership among adults, while Ghana secured a notable 17% ownership rate. Placing just behind countries like Australia, Indonesia, Nigeria, and Malaysia, Ghana outranks others such as Hong Kong, Singapore, Brazil, Norway, Canada, the United States, New Zealand, Germany, the United Kingdom, Japan, and more.

Before delving deeper, let’s understand cryptocurrency better. A cryptocurrency, commonly referred to as ‘crypto,’ is a digital currency designed to operate as a medium of exchange over a computer network. Interestingly, cryptos function independently of any central authority, be it a government or a bank.

As individuals own these digital assets, ownership records are maintained in a digital ledger secured through robust cryptography. Notably, cryptocurrencies don’t necessarily manifest as physical entities but operate purely in the digital realm. Their decentralized nature sets them apart from Central Bank Digital Currencies (CBDCs).

The workings of most cryptocurrencies involve a blockchain system. These computer networks handle transaction processing and maintain a chronological database by organizing transactions into ‘blocks’ connected in an unbroken ‘chain.’ Initially centralized upon creation, cryptocurrencies later shift to a decentralized control system using distributed ledger technology.

Wondering why so many people worldwide invest in intangible assets? Supporters perceive cryptos as the currency of the future, investing in anticipation of future value escalation. Their appeal lies in the absence of governmental or banking control and the increasing value they offer.

Returning to Ghana’s status, approximately 17.3% of Ghanaian adults own some form of cryptocurrency, totaling 3.1 million individuals, exceeding the global average of 15%. Bitcoin emerges as the most prevalent, owned by 52.1% of cryptocurrency holders, followed by Ethereum (18.1%), Dogecoin (19.7%), and Ripple (13.4%).

Younger demographics display heightened interest in cryptocurrency ownership globally. In Ghana, 70.4% of owners fall between 18 to 34 years old, showcasing a substantial interest among the youth, with 16.6% aged 34 to 54 and 13% above 55 years old.

Often overlooked, Africa emerges as a significant market for cryptocurrencies due to its comparatively higher inflation rates. Facing inflationary pressures, individuals opt for cryptocurrencies owing to their decentralized structure. This trend has contributed to Ghana’s declining inflation rates over recent years.

The increasing interest among Ghanaians in cryptocurrencies aligns logically with the country’s economic landscape. Africa, as a whole, presents an ideal environment for cryptocurrency adoption. Moreover, investing in cryptocurrencies or transacting with them is gaining traction, with sellers accepting cryptocurrencies as payment. Notably, financial giants like PayPal have introduced cryptocurrency transaction options, underlining the sector’s immense potential and justifying Ghana’s growing adoption of this intriguing mode of transactions.

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Business

South Africa’s Crypto Landscape Amidst Upcoming Licensing Round

South Africa is witnessing a surge in cryptocurrency activity as it gears up to issue its first operational licenses for financial service providers. Payment and fintech sectors are leading this charge, paving the way for potential involvement from commercial banks. Notable developments include the ability for users to utilize cryptocurrency for purchasing goods and services and a new feature enabling them to withdraw digital currency as cash from automated teller machines (ATMs).

Stitch, a prominent payments infrastructure company in South Africa, has introduced an innovative payment solution named ‘Pay with Crypto.’ This groundbreaking method empowers customers to seamlessly use cryptocurrency in transactions denominated in the South African rand. Users opting for ‘Pay with Crypto’ can either deposit funds or directly conduct transactions using their cryptocurrency.

Reflecting on South Africa’s significant cryptocurrency adoption, Junaid Dadan, President of Stitch, remarked, “Cryptocurrency adoption in South Africa ranks among the highest globally. There’s a considerable audience eager to utilize their crypto for transactions.” Dadan highlighted the company’s commitment to engaging this crypto-savvy audience through the ‘Pay with Crypto’ method while mitigating volatility risks.

Another fintech player, Paycorp, has launched CryptoExpress, an app allowing users to convert their cryptocurrency into South African rands and withdraw cash at over 3,000 nationwide ATMs. This integration with various cryptocurrency wallets enhances user convenience, enabling withdrawals at Cash Express ATMs operated by Paycorp’s subsidiary, ATM Solutions. To complete a withdrawal, users convert their cryptocurrency within the app, authorize the transaction in their crypto wallet, and obtain a withdrawal voucher PIN generated by CryptoExpress, as per Paycorp’s official communication.

The Financial Sector Conduct Authority (FSCA) in South Africa recently completed assessments for 36 out of 74 firms initially considered. These 36 entities are set for presentation at the Licensing Executive Committee meeting, with 22 additional applications to be reviewed in February and the remaining 14 under consideration until March.

With 128 license applications received from crypto asset service providers as of November 30, 2023, South Africa will now mandate that foreign-headquartered crypto companies establish a local office, as per new regulations.

The FSCA emphasized the significance for offshore-based entities to establish a local branch, enabling effective oversight and accountability for activities conducted in South Africa. Most Crypto Asset FSPs in South Africa operate domestically, with only a minority based in foreign countries. The market study involving 47 financial service providers revealed that over half focus on retail customers, mainly revolving around crypto exchanges (49%). In November 2022, the South African cryptocurrency market peaked at over 8 billion rand ($427 million) in monthly transaction value.

Meanwhile, international cryptocurrency firms are expanding services across Africa, targeting countries with high crypto adoption and favorable regulations. The Open Platform (TOP), a Dubai-based investment platform, announced the global launch of Wallet, a Telegram bot facilitating crypto transactions. Starting in South Africa and Kenya in 2023, the expansion aims to tap into Telegram’s user base and escalating crypto adoption rates in these markets, with Nigeria slated for the first quarter of 2024.

In a related move, Kenya introduced the Capital Markets (Amendment) Bill of 2023 to regulate crypto transactions, defining crypto assets as securities and imposing capital gains taxes on them. The proposed legislation aims to tax cryptocurrency assets held in exchanges and digital wallets, requiring Kenyans to pay capital gains tax on increased crypto market values during sales or transactions. Additionally, the bill suggests imposing a 20% excise duty on all fees for cryptocurrency transactions.

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Business

FIFA’s Exclusive NFT Collection for 2023 Club World Cup Revealed

FIFA, the global authority overseeing soccer, is gearing up to introduce its inaugural collection of non-fungible tokens (NFTs) in collaboration with blockchain company Modex, ahead of the 2023 Club World Cup slated in Saudi Arabia.

As per FIFA’s announcement on its official website, a premiere assortment of 100 NFTs is scheduled for debut on December 15. These exclusive tokens will grant lucky recipients the chance to secure tickets to the climactic event of the FIFA World Cup in 2026.

Additionally, a batch of 900 digital collectibles is slated for release on the Polygon network and OpenSea by December 2023. This collection will encapsulate memorable moments from the ongoing tournament and digital renditions of memorabilia.

The avenue to access these NFTs will be through FIFA’s dedicated platform, FIFA+ Collect, which was inaugurated in September 2022, operating on Algorand’s technology.

Romy Gai, FIFA’s Chief Business Officer, expressed enthusiasm about the collaboration with Modex, stating, “We are thrilled to embark on this groundbreaking journey with Modex and elevate the FIFA+ Collect platform to greater heights. Since its launch, the platform has garnered immense popularity globally, offering football enthusiasts worldwide the chance to own a piece of football history.”

The upcoming launches, both in 2023 and beyond, aim to provide football aficionados with a distinctive and innovative avenue to engage with the sport while contributing to the burgeoning digital collectibles market.

Since its inception, the FIFA+ Collect platform has hosted 11 NFT drops, resulting in the creation of 909,255 digital collectibles held by 16,448 owners. The platform has also witnessed a combined trading volume of $2.4 million across primary and secondary NFT markets.

Francesco Abbate, CEO of Modex, expressed pride in supporting FIFA’s endeavor, stating, “Digital collectibles broaden the spectrum through which fans can engage with their beloved players, teams, and the game itself, and we’re honored to aid FIFA in achieving this vision.”

The FIFA Club World Cup, which kicked off in Jeddah, Saudi Arabia, on December 12, 2023, will showcase seven of the world’s premier football clubs, including Egypt’s Al Ahly representing Africa.