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Opinions

Survey Indicates Asians and Africans More Inclined Towards Crypto Investment

A recent survey conducted by blockchain software company ConsenSys has revealed that individuals in Asia and Africa exhibit a higher propensity to invest in cryptocurrencies in the coming year. The comprehensive survey polled 15,158 participants aged 18 to 65 across 15 countries spanning four continents, encompassing North and South America, Europe, Africa, and Asia.

Notably, the survey uncovered that 92% of respondents were familiar with cryptocurrencies. However, the strongest interest in cryptocurrency investment within the next 12 months emerged from countries such as Nigeria, South Africa, the Philippines, Vietnam, Indonesia, and India.

In contrast, Europe and Japan appeared to be more cautious, with a majority of respondents indicating that they would not consider cryptocurrency investments. Specifically, 22% of respondents in France, the U.K., Japan, and Slovakia cited the high volatility of cryptocurrencies as their primary deterrent. Additionally, respondents from Brazil, South Africa, and some from the U.K. expressed concerns about the prevalence of scams in the crypto industry.

Interestingly, only 3% of respondents believed that blockchain technology and Web3 were not innovative and merely replicated existing technology.

Environmental considerations also played a role in respondents’ perspectives. A majority from Asia, South America, and Africa viewed cryptocurrencies as environmentally friendly. Conversely, respondents from the U.S., Japan, South Korea, and Europe maintained that crypto was not environmentally friendly and would never be.

The survey respondents collectively believed that the high-profile collapses of crypto firms in 2022 had a significant impact on trust within the crypto ecosystem. However, respondents from Germany, Vietnam, India, and South Africa contended that these bankruptcies did not substantially affect the industry’s reputation.

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Business

ETHSafari 2023: Exploring Real Impact, Use Cases, and Technological Advancements in Africa’s Blockchain Space

ETHSafari 2023 is set to be a game-changing event that brings together blockchain enthusiasts, experts, and innovators for an incredible week of learning, networking, and celebration, building on the overwhelming success of ETHSafari 2022. Set against the breathtaking background of Kenya, ETHSafari 2023 will take place from September 18 to 24, providing a once-in-a-lifetime opportunity to delve deep into the most recent breakthroughs in blockchain technology.

This year’s edition of ETHSafari promises to be even more spectacular, featuring a dynamic program that includes a bootcamp in Nairobi, Kenya, and a captivating conference and festival in Kilifi, all within the enchanting ambiance of Beneath the Baobabs.

The ETHSafari online hackathon, which is currently open for registration on the Taikai Network, is one of the exciting features of ETHSafari 2023. Participants can compete for prizes from an ever-growing prize pool, making it an exciting and competitive environment for blockchain enthusiasts and developers.

Distinguished blockchain speakers will grace the event, providing vital insights and knowledge. The program includes heavyweights such as Antoni Martin of Polygo, Gwera Kiwana of MFS Africa, Francesco Andreoli of ConsenSys, and many others who promise a varied range of voices and perspectives.

ETHSafari 2023 has set its overarching theme as ‘Get Real,’ and it will be organized around four key tracks:

1. Real People (Identity) & Communities (DAOs): Exploring the profound impact of blockchain on identities and decentralized autonomous organizations.

2. Real Tech Advances: Delving into the latest technological advancements in blockchain, decentralized finance, smart contracts, and more.

3. Real Impact and Use Cases: Spotlighting real-world applications of blockchain technology, emphasizing tangible benefits and societal impact.

4. Real World Assets: Examining the convergence of blockchain and traditional assets, offering a glimpse into the future of asset management and ownership.

Attendees can look forward to an immersive learning experience, gaining insights into the ever-evolving landscape of decentralized finance, smart contracts, and beyond.

Beyond the enriching educational content, ETHSafari 2023 will foster valuable networking opportunities. A series of social events, including a welcoming reception, side events, and an exhilarating after-party, will allow participants to connect with fellow enthusiasts, experts, and industry leaders.

As an extraordinary twist, attendees will embark on the Blocktrain adventure, a remarkable train journey traversing the picturesque Kenyan savannah from Nairobi to the coastal destination, adding a touch of adventure and exploration to the event.

ETHSafari 2023 promises to be a week of knowledge-sharing, innovation, and companionship, cementing its place as a prominent event on the global blockchain calendar. Don’t pass up this once-in-a-lifetime opportunity to be a part of Africa’s blockchain revolution.

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Opinions

Nigeria Leads the Global Charts in Cryptocurrency Awareness, Recent Survey Unveils

Nigeria, known as Africa’s largest economy, has emerged as a global frontrunner in cryptocurrency awareness, as per the findings of an extensive survey conducted by ConsenSys and YouGov. This international survey aimed to shed light on how different countries perceive cryptocurrencies and the broader Web3 ecosystem.

The key takeaways from the survey underline Nigeria and South Africa as the top two nations with the highest cryptocurrency awareness levels. When juxtaposed with respondents from economic powerhouses like the UK, US, Japan, and Germany, an astounding 99% of Nigerians and 98% of South Africans exhibited a more profound grasp of Web3 concepts.

The comprehensive poll encompassed the perspectives of 15,158 individuals aged 18 to 65 from 15 diverse countries. Impressively, 70% of Nigerian respondents affirmed their comprehension of fundamental blockchain technology concepts.

The prevalence of cryptocurrency ownership underscores Nigeria’s remarkable cryptocurrency awareness, with a staggering 76% of the 1,001 Nigerian participants reporting current or past cryptocurrency holdings. Bitcoin and Ethereum emerged as the favored cryptocurrencies, closely trailed by BNB and Dogecoin, both of which outperformed Tether in popularity.

Moreover, a remarkable 90% of Nigerian respondents expressed a keen interest in investing in cryptocurrencies within the upcoming year, while 65% regarded cryptocurrencies as a safeguard against hyperinflation and currency devaluation.

Despite regulatory concerns, notably highlighted by the Central Bank of Nigeria’s decision to sever ties between cryptocurrency exchanges and local banks in February 2021, half of the respondents advocated for regulatory frameworks that promote participation while safeguarding investors.

The survey’s findings also illuminated a noteworthy disparity between cryptocurrency awareness and understanding. While 92% of respondents were aware of cryptocurrencies, only 8% demonstrated a strong comprehension of Web3, signalling a significant knowledge gap. Web3 was identified as the next evolutionary phase of the internet by survey participants, offering attributes such as decentralization, enhanced privacy, and digital ownership.

A considerable portion of respondents expressed a desire for increased control over their online identity and data privacy, with 70% asserting that they should partake in the profits generated from their data. Trust in existing internet services, particularly social media platforms, remained low, underscoring the pressing need for improved solutions pertaining to identity ownership and privacy.

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Business

South Africa and UK Firms Collaborate to Provide Local Crypto Insurance

A South African underwriter has joined forces with a UK-based cybersecurity specialist to introduce cryptocurrency insurance services locally. The UK company at the center of this initiative is Digimune, which has partnered with Revolute Underwriting Agency to launch a crypto insurance product aimed at safeguarding individual investors and cryptocurrency exchanges.

Known as CryptoShield, this insurance offering provides comprehensive coverage for individuals against the loss of funds resulting from hacks or illicit activities specifically targeting approved cryptocurrency exchanges or wallets. Digimune has clarified that the policy extends its coverage to encompass the top 20 major cryptocurrencies, including Bitcoin, Bitcoin Cash, Ethereum, Ripple, Litecoin, Solana, and Polygon. Additionally, CryptoShield comes with a maximum coverage limit of $100,000. For cold or hard wallets, the maximum coverage limit can be set as high as $500,000, according to Digimune.

In a press release, Digimune stated, “Premiums are very affordable and include Digimune’s risk mitigation tools. As an entry-level solution, the insured will pay approximately $25 per month for $5,000 in coverage.”

Simon Campbell-Young, VP of Global Sales and co-founder of Digimune, emphasized the significance of CryptoShield, saying, “CryptoShield addresses the specific risks and needs of crypto-investors and fills a significant gap in the insurance market. We use proactive measures to lower the chances of individuals being defrauded and closely monitor the dark web for any activities related to our customers’ digital identities, ensuring their online security. In the event of losses suffered, our insurance policy offers coverage to safeguard our customers’ financial interests.”

Considering the volatility and complexity associated with cryptocurrency investments, the availability of insurance tailored specifically for digital currencies represents a sensible and much-needed development.

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Business

Report: Kenyan Subscribers Comprised 25% of Worldcoin’s Global Total in July

During the month of July, a significant number of Kenyan residents, estimated at approximately 350,000, demonstrated their interest in subscribing to and acquiring Worldcoin’s cryptocurrency tokens. As revealed by a Kenyan legislator, executives from Worldcoin are now scheduled to appear before a parliamentary committee on September 4th.

A Kenyan parliamentary committee, charged with examining Worldcoin’s activities within the East African nation, recently disclosed that a substantial 350,000 residents had expressed their interest in the project before it was suspended by the government. According to the committee’s findings, Kenyan subscribers constituted a quarter of Worldcoin’s global total at some point in July.

Nonetheless, as reported in a publication by The Star, the total number of World ID sign-ups from 34 different countries had surpassed 2.26 million by the end of August. Furthermore, the organization noted in a blog post dated August 31st that the demand for World IDs continues to surge. To support this claim, Worldcoin cited the record-breaking number of sign-ups recently witnessed in Argentina.

While the Worldcoin team continues to highlight various milestones achieved by the project, Kenyan officials have seemingly adopted a stringent stance towards the organization and its local affiliates. Additionally, a Kenyan court reportedly upheld the government’s decision to suspend Worldcoin’s activities within the country.

Meanwhile, the investigating committee, chaired by Gabriel Tongoyo, the legislator from Narok West, received reports of some individuals failing to redeem their tokens. Nevertheless, Tongoyo disclosed that the owners of Worldcoin would soon appear before the Kenyan parliament to address issues related to the cryptocurrency project.

“They are scheduled to appear on September 4th… due to travel constraints, they have informed us that they will not be present as initially planned, so we have adjusted our schedule accordingly,” stated the legislator.

Tongoyo also mentioned that Solicitor General Shadrack Mose and the nation’s Data Commissioner, Immaculate Kassait, are expected to testify before the committee.

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Business

Blockchain Association of Kenya Challenges Digital Asset Tax in Court

The Blockchain Association of Kenya (BAK) has taken a decisive step in opposing the recently enacted Digital Asset Tax (DAT) introduced by Kenya’s Finance Act 2023. BAK has formally filed a petition before the High Court of Kenya, raising concerns over the legality and constitutionality of this new tax regime. This move comes in response to the impending enforcement of DAT, scheduled to commence on September 1, 2023.

President William Ruto signed the Finance Act 2023, a contentious piece of legislation, into law on June 20, 2023, affecting numerous parts of Kenya’s digital economy, including content creators and cryptocurrency merchants. The new law requires content providers to pay taxes on their earnings from digital productions and promotional activities. This significant adjustment in tax policy underscores the government’s desire to regulate the fast-expanding digital business, which has grown in popularity among Kenyan content creators and online influencers.

In a press release on X (formerly Twitter), BAK expressed its commitment to fostering a favorable environment for innovation while ensuring legal clarity. The association’s petition seeks to address concerns about the potential ramifications of DAT for both the digital industry and the broader economy.

The Finance Act 2023 proposed the introduction of a Digital Asset Tax (DAT), applicable to earnings generated from the transfer or trade of digital assets. These digital assets, as defined by the bill, encompass non-physical entities such as cryptocurrencies, non-fungible tokens (NFTs), and other digital representations of value. These assets are created through cryptographic methods or alternative means, enabling electronic transfer, storage, and exchange.

The DAT, as per the law, mandates platform owners to deduct a 3% tax from the value of the digital asset being transferred or exchanged. Non-resident platform owners are required to remit this tax within 24 hours of deduction.

Enforcement of the DAT has raised concerns about its potential adverse effects on industry growth and innovation. The central focus of BAK’s petition is to critically assess the legal and constitutional aspects of imposing such a tax on digital assets.

The High Court of Kenya is set to address this matter during a preliminary hearing scheduled for September 28, 2023. This legal challenge is closely watched by industry players, content creators, and cryptocurrency enthusiasts, as its outcome could have far-reaching implications for the taxation of digital assets in Kenya.

As this legal battle unfolds, Kenya’s digital landscape remains in a state of uncertainty, awaiting a resolution that will shape the future of the country’s burgeoning digital economy.

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Business

Is South Africa Facing Crypto Industry Setbacks? Recent Developments Suggest So

While South Africa has been hailed as one of the most crypto-friendly countries in Africa, recent events indicate that challenges might be brewing within its crypto landscape. A notable trend has emerged with several US-based crypto firms opting to block users from South Africa, potentially signaling difficulties in the local crypto industry.

Kraken’s Blacklisting of South African Users

Recent reports from local media outlet Moneyweb shed light on a significant development: the renowned crypto exchange Kraken has ceased accepting deposits from South African users. This move was triggered by Kraken’s banking partner, which took the step due to South Africa’s inclusion on its anti-money laundering blacklist. This situation mirrors an earlier incident involving Circle, the issuer of USDC, when it halted fiat payments from South African users. Circle’s decision was seemingly prompted by the anticipation of more substantial financial sanctions against the country.

The decision made by Kraken’s banking partner might be influenced by the actions of the Financial Action Task Force (FATF). In February of the current year, the FATF designated South Africa as a country subject to “increased monitoring,” categorizing it under the “grey list.” This classification pertains to nations under scrutiny due to concerns about their anti-money laundering and counter-terrorist financing efforts. While the FATF acknowledges South Africa’s robust framework in combating financial crimes, it has identified shortcomings in dealing with new technologies, including digital assets.

The FATF has noted the country’s “non-compliance” with the technical prerequisites for combating money laundering within the crypto industry. Consequently, financial institutions, including Kraken’s banking partner, might be exercising caution in processing transactions from South African users to avoid any potential involvement in money laundering activities, particularly those related to cryptocurrencies.

Impact on South African Crypto Arbitrageurs

Crypto arbitrage, a popular practice in South Africa, involves exploiting price differences for assets like BTC and USDC, which often trade at a premium of 0.7% to 3.5% on local exchanges. However, regulatory and technical setbacks have cast a shadow over this thriving business. The prior decision by Circle to halt payments in the country disrupted arbitrage trading, mainly conducted in USDC. Consequently, the premium on these assets surged by 4% due to reduced trading volumes.

Kraken’s recent move to block deposits from South African crypto users has dealt a significant blow to the crypto arbitrage sector. Many traders reportedly relied on Kraken to execute their trades, causing a decline in arbitrage trading volume and leading to an increase in the premium, with reports suggesting it has reached as high as 3.5% following Kraken’s decision.

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Business

Concerns of Exit Scam Rise as Patricia Exchange Converts User Funds to Native Token

A Nigerian digital asset trading platform, Patricia, has sparked fears of an exit scam after it introduced a native token and converted all user deposits into tokens deemed to have little value. Operating from Lagos, Patricia had previously disclosed being targeted by a hack earlier in the year, with details such as the date, stolen amount, and reporting to authorities still undisclosed. This incident led to a suspension of withdrawals, causing distress among its users.

Several months later, Patricia has taken steps to rectify the situation by launching a new native token, accompanied by a revamped mobile app. In addition to using the new token for reimbursing users who suffered losses due to the hack, the platform is also imposing the token on its other users.

Patricia’s announcement entails the automatic conversion of all outstanding BTC and Naira balances to the PTK token without requiring user consent. The PTK token is purportedly a stablecoin that is tied to Tether, another stablecoin with a questionable history. Patricia characterizes it as a “debt instrument” designed to ensure the accountability of customer assets and initiate the path to asset recovery.

A notable concern is that PTK will not be issued on-chain. The company clarified in its white paper that the Patricia Token remains off-chain and serves as an internal token utilized to represent debt. Its value will mirror the dollar equivalent of the converted assets. Additionally, the company claims that it will gradually release these tokens based on its profitability.

The launch of the new token has triggered strong resistance among Patricia’s users. Many have taken to social media to express skepticism towards the project, branding the new token as part of an exit scam scheme.

Throughout the years, African investors have frequently fallen victim to digital asset scams, resulting in significant financial losses. Chainalysis data indicates that scams involving investments, romance, and giveaways have been the most prevalent. Notably, the South African scam Africrypt holds the record for the continent’s largest scam. Allegedly orchestrated by two siblings aged 18 and 21, the scam reportedly defrauded high-net-worth individuals and celebrities, amounting to a staggering $3.6 billion.

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Business

Angola Intends to Prohibit Bitcoin Mining

Angola is taking steps to ban the mining of Bitcoin (BTC) block rewards, citing concerns over the substantial energy consumption associated with the process. This move comes at a time when numerous governments around the world are closely examining the cryptocurrency sector.

In July, Angola’s Cabinet approved a preliminary bill that seeks to outlaw BTC mining within the nation. The bill is currently under review by the country’s parliament, and if it gains approval, President JoĂŁo Lourenço will enact it into law.

The primary objective of the bill is to safeguard Angola’s national power grid, as highlighted by Finance Minister Vera Sousa. Despite ranking as Sub-Saharan Africa’s second-largest oil producer, Angola derives 70% of its electricity from renewable sources.

Sousa declared, “Activities related to cryptocurrency mining are proscribed within the national territory. Criminal penalties will apply to unauthorized possession of cryptocurrency materials, cryptocurrency mining, misuse of electrical installation licenses, and interference with the national electrical system.”

Angola’s apprehensions about BTC’s energy consumption are part of a broader global trend. China, which once accounted for over 70% of the BTC hash rate, has been gradually expelling miners from its territory for several years. The United States and Kazakhstan emerged as prime relocation options for these miners, but even these countries are reevaluating their stance on BTC mining.

In the U.S., lawmakers such as Senator Elizabeth Warren (D-MA) are intensifying their oversight of the sector and advocating for more rigorous regulations. Meanwhile, Kazakhstan has been disconnecting certain miners from its national power grid.

However, for Angola, the energy-intensive nature of BTC mining is only one aspect of concern. According to the minister, this move is the initial step towards curbing the utilization of digital currencies. Angola aims to uphold the central bank’s exclusive authority to issue currency.

Additional worries encompass the potential exploitation of digital assets for money laundering and funding terrorist activities.

Advocates for Regulation Over Ban

Local industry stakeholders are criticizing the proposed ban and urging the government to implement regulatory measures instead.

Manuel Euclides, the founder of the local digital asset exchange Yetubit, voiced his concerns, stating, “Should this legislation be ratified, it would substantially impede the adoption of cryptocurrencies in Angola.”

He emphasized the potential benefits of regulating the industry and collaborating with strategic companies well-versed in the local market. Euclides also highlighted the fiscal losses the government might incur due to the absence of tax revenue from Angolan individuals investing in cryptocurrencies and cryptocurrency mining firms that could contribute to energy expenses.

Angola has emerged as one of Africa’s prominent BTC mining hubs. A report from Cambridge University ranked the country just behind Egypt and Libya in terms of BTC hash rate production on the continent.

Furthermore, Angola stands as one of Africa’s most cost-effective nations for BTC mining, with an average mining cost of $7,300 per BTC, according to data. This cost-effectiveness ranks only behind Algeria, Sudan, and Ethiopia.

Nevertheless, Euclides pointed out that a significant portion of mining activities in Angola are conducted by foreign entities, primarily hailing from China, Vietnam, and Israel.

“They are drawn to mining in Angola due to our competitively priced energy compared to other global regions,” he explained.

Some of these mining operations are conducted illicitly, leading the government to shut down numerous facilities in recent months. In a noteworthy incident, the country’s leading investigative agency exposed an undercover mining operation operating within a brick factory, resulting in the arrest of numerous Chinese nationals.
Angola has rapidly positioned itself as a hub for digital assets, outpacing many traditional industry leaders. A report published in July revealed that the country’s digital asset sector is as vibrant as those in Kenya and South Africa.

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Business

Ghana Ranks 9th in Cryptocurrency Ownership Among 27 Countries

Ghana has secured the 9th spot among 27 nations in the Cryptocurrency Adoption Index, as per the latest findings from Finder.com. This comprehensive study reveals that Ghana has embraced cryptocurrency with enthusiasm, positioning itself in the top tier of countries fostering crypto adoption. Vietnam claims the lead in cryptocurrency ownership, boasting a staggering 29% of adults who own cryptocurrencies. Ghana, not far behind, stands at a solid 17% of adults who have embraced digital assets. This ranking places Ghana above countries such as Hong Kong, Singapore, Brazil, and even advanced economies like the United States, the United Kingdom, and Germany.

To delve deeper, it’s crucial to understand the essence of cryptocurrency. Cryptocurrency, often referred to as crypto, functions as a digital currency that operates through a decentralized computer network. What sets cryptocurrencies apart is their lack of dependence on central authorities, be it governments or banks, for regulation.

Individual ownership of these currencies is meticulously recorded in a digital ledger, fortified by robust cryptography to ensure secure and safe transactions. It’s worth noting that cryptocurrencies aren’t limited to the traditional concept of “currencies” and are entirely digital entities without any physical presence. Unlike Central Bank Digital Currencies (CBDCs), they operate in a decentralized manner.

The foundation of this system lies in the blockchain framework, where computer networks perform two pivotal roles: processing transactions and maintaining an unbroken database of these transactions. Transactions are grouped into “blocks,” which are then linked together in chronological order to form an immutable “chain.” Cryptocurrencies initially start as centralized entities but subsequently, shift to a decentralized control system through distributed ledger technology.

The question arises: Why are so many people globally investing in a non-physical entity? Advocates of cryptocurrencies view them as the future of currency and are eager to capitalize on their potential appreciation. The appeal lies in the absence of government or bank control and the upward trajectory of cryptocurrency values.

Returning to our starting point, 17.3% of Ghana’s adult population—equivalent to 3.1 million adults—owns some form of cryptocurrency. This statistic surpasses the global average of 15% ownership. This demographic breakdown showcases that 70.4% of crypto owners in Ghana are aged 18 to 34, underlining the youth’s profound interest in cryptocurrency.

Africa often goes unnoticed as a cryptocurrency market, yet it boasts considerable potential due to its high inflation rates relative to other global regions. Cryptocurrencies provide a viable alternative to traditional currencies in economies grappling with inflation. In Ghana, this phenomenon has contributed to a decrease in inflation rates over recent years.

The growing interest in cryptocurrency among Ghanaians is logical and aligned with the country’s economic landscape. Africa, as a whole, is primed for cryptocurrency adoption. Importantly, embracing cryptocurrencies doesn’t necessitate purchasing them; investment opportunities are equally prevalent. Moreover, the practice of exchanging goods for cryptocurrencies is gaining momentum, with sellers accepting crypto payments. Even financial giants like PayPal have entered this arena, facilitating transactions through cryptocurrencies. Undoubtedly, this burgeoning sector holds immense potential, making it an enticing choice for many Ghanaians seeking innovative transaction methods.