Yellow Card, Africa’s leading stablecoin infrastructure provider, has unveiled a groundbreaking report that maps the digital asset regulatory landscape across the continent. The first of its kind, the report offers a deep dive into how African countries are responding to the fast-paced growth of digital assets and stablecoins.
With more than 54 million digital asset users in Africa and Sub-Saharan Africa leading the world in stablecoin adoption governments are racing to build frameworks that safeguard users, attract investment, and foster innovation.
“The report reflects an inflection point for Africa’s digital finance ecosystem,” said Peter Mwangi, Country Manager for Yellow Card Kenya. “Stablecoins are already transforming how businesses and individuals transact. It’s critical that regulation evolves just as dynamically.”
A Fragmented but Fast-Evolving Regulatory Map
The report groups African countries into three categories: those with existing digital asset regulations, those developing frameworks, and those with little or no formal oversight.
| Category | Countries |
|---|---|
| Established Frameworks | Nigeria, Botswana, South Africa, Namibia, Mauritius, Seychelles, CEMAC |
| Developing Regulations | Kenya, Ghana, Ethiopia, Rwanda, Tanzania, Uganda, Zambia, Morocco, UEMOA |
| No Framework / Informal Use | Egypt*, DRC, Zimbabwe, Malawi |
*Egypt has over 11 million crypto users despite a ban.
“Regulatory maturity varies wildly across the continent,” said Edline Murungi, Senior Legal Counsel for East Africa at Yellow Card. “Some countries like South Africa are issuing hundreds of licenses, while others are just beginning to acknowledge digital assets exist.”
Kenya: Africa’s Most Progressive Draft Law?
In Kenya, Yellow Card has played an active role in shaping regulatory dialogue. The draft Virtual Asset Service Providers [VASP] Bill, gazetted earlier this year, proposes a dual-regulator model involving the Central Bank of Kenya [CBK] and the Capital Markets Authority [CMA]. It is widely viewed as one of the continent’s most forward-thinking frameworks.
“Kenya’s draft bill stands out for acknowledging the two core uses of digital assets: investment and payments,” added Murungi. “It sets clear licensing, capital, and compliance obligations balancing innovation with accountability.”
Taxation, AML, and Consumer Protection
The report highlights how countries are handling anti-money laundering [AML], tax policy, and consumer safeguards. While some like Uganda and Rwanda have already integrated VASPs into their AML laws, others including Kenya are in transition.
Taxation remains a sticking point. The 2023 introduction of Kenya’s digital asset tax sparked industry concern. Yellow Card and other stakeholders have since engaged the National Treasury and Finance Committee to make it more innovation-friendly.
“We support fair taxation,” said Mwangi. “But it must be clear, consistent, and supportive of a nascent industry still finding its footing.”
Why This Report Matters
The report is more than a snapshot it’s a roadmap. By consolidating regulatory trends, Yellow Card hopes to inform policy, guide new market entrants, and improve understanding of digital assets’ role in Africa’s financial future.
“We believe access to the dollar should not be a privilege,” said Mwangi. “Through stablecoins, we’ve helped Africans move over $5 billion in trade often faster and cheaper than traditional banks. That impact deserves smart, inclusive regulation.”
