Dive into the latest from crypto Africa as KPMG urges Nigerian banks to adopt blockchain and South Africa crypto providers face strict compliance from April 2025.
The African continental landscape is always teeming with new crypto developments. Big 4 Audit firm KPMG has urged Nigerian banks to collaborate with blockchain firms. Lisk Innovation Hub has completed a training initiative for dozens of African crypto startups, and South African regulators are pressing to streamline crypto processes in the country.
Here’s more of what you may have missed this week:
Nigeria Crypto News: KPMG Urges Local Banks To Embrace The Blockchain
Global audit firm KPMG has encouraged Nigerian financial institutions to embrace and collaborate with crypto firms. The audit firm urged the banks to collaborate with crypto firms to overcome the limitations of both types of institutions.
KPMG deems collaboration necessary because banks need exposure to technological advancements in finance. Crypto is at the forefront of this transformation, and banks are trying to catch up with their various fintech implementations. Meanwhile, many crypto platforms can benefit from the expertise of traditional institutions in risk management, combating financial fraud, and compliance practices.
The two industries may seem inherently opposite due to the blockchain ethos of decentralization. Nonetheless, there is a lot that can be learned from each’s success.
Nigeria also recently introduced some limited restrictions on crypto transfers. The restriction specifically relates to restrictions on Binance users from participating in crypto giveaways and airdrop campaigns.
Binance users in Nigeria, including those who wish to buy some of the best meme coins on Solana, reported that they could not access these incentives. Authorities have not publicly commented on the issue, and this restriction’s rationale is still unknown.
The development is a notable escalation in the love-hate relationship between Nigerian authorities and crypto exchanges. In 2024, the arrest of Binance executive Tigran Gambaryan sparked international controversy, with the mega exchange exiting Africa’s latest market.
Tensions eased towards the end of the year, with Gambaryan being released and Binance resuming operations. Crypto stakeholders in the country will assess what the latest developments mean for the industry.
Africa Crypto News: Lisk Incubation Hub Completes First Training Initiative
Dubai-based blockchain platform Lisk has announced the completion of its first round of a blockchain incubation training initiative for 23 African startups. The platform allocated a total of $196,000 to startups looking to innovate across the continent.
This effort saw the benefitting startups receive key insight that allowed them to expand their market presence and the value of their tokenized assets.
Some benefitting startups include the stablecoin platform Tata iMali from South Africa, the DeFi platform TrendX from Nigeria, and the real estate blockchain platform NomaChain from Kenya.
Lisk will open applications for the second cohort of applicants starting in May 2025. These efforts aim to build capacity and improve young startups to ensure that Lisk nurtures the next generation of blockchain innovators in emerging markets.
South Africa Crypto News: Authorities Tighten Regulations For Crypto Asset Service Providers
From April 30, 2025, crypto asset service providers in South Africa will face stricter compliance requirements. These requirements will kick in as part of Directive 9, which comes into effect in response to the country’s being greylisted by the Financial Action Task Force (FATF).
A key requirement for service providers will be the “travel rule,” which mandates transaction details for domestic and cross-border transfers. These details include the names, identity details, and residential addresses of transacting parties. Additionally, service providers have the responsibility to conduct due diligence on their users before processing transactions.
Enforcing these regulations will primarily target centralized exchanges and fintech service providers in the country. Crypto’s peer-to-peer aspect obviously makes enforcement difficult when parties do not use a service provider subject to these regulations.
Last week, the crypto exchange Luno recommended that South African authorities reclassify crypto as an onshore asset to expand revenue from exchange providers. Africa’s general manager, Marius Reitz, believes that the current designation makes it difficult for institutional investors to invest in crypto.
Luno urges the country’s Treasury to classify some of the best cryptos to buy as on-shore assets. This designation would bring clarity to crypto asset service providers. The current designation of crypto assets does not expressly classify them as onshore assets, meaning that there are legal concerns around exporting such funds out of the country without the Treasury’s permission.
Designating crypto assets as onshore assets would mean there is no risk of running afoul of offshore/onshore transfers and the legislation surrounding them.
Key Takeaways
- KPMG urges financial institutions in Nigeria to embrace the blockchain
- Lisk completes its first round of a blockchain incubation training initiative for 23 African startups
- Crypto asset service providers in South Africa will face stricter compliance requirements from April 30, 2025
The post Africa Crypto Week in Review: KPMG Urges Nigerian banks to Embrace Blockchain, Lisk Incubation Hub Completes Training Initiative As South Africa Tightens Crypto Exchange Laws appeared first on 99Bitcoins.
