Africa sets global example in regulating digital assets safely

Over the past decade, financial systems worldwide have become more digitally interconnected than ever. While this connectivity brings convenience and speed, it also opens the door to financial crime

From complex money-laundering networks to cyber-enabled fraud rings, criminal actors exploit gaps in regulation and oversight. As traditional finance evolves, so do opportunities for abuse—and this risk is especially pronounced in the rapidly expanding digital asset space.

Cryptocurrencies and other digital assets promised a more inclusive and efficient financial system. Yet without appropriate safeguards, innovation can inadvertently create new avenues for exploitation. Over recent years, financial crime has grown alongside the digital economy. According to Chainalysis, by July 2025, over US$2.17bn was reported stolen from cryptocurrency services. But these numbers reflect real human consequences: small businesses locked out of working capital due to crypto scams, families losing savings to impersonation schemes, and young founders forced to shutter promising ventures after a single fraud incident drained their liquidity. Financial crime in digital assets is not abstract—it is personal, and often irreversible.

Criminals increasingly leverage digital currencies via darknet markets, ransomware demands, and other schemes, exploiting weak oversight, insufficient identity verification, and gaps in enforcement. That’s why anti-money-laundering (AML) and counter-terrorist financing (CTF) controls aren’t bureaucratic checkboxes—they are foundational infrastructure for a functioning financial system. Regulation is not a “nice-to-have”; it is the safeguard that separates legitimate innovation from systemic risk.

The Risk Landscape Sharpens as Digital Assets Grow

Without clear rules, digital assets have often been described as the Wild West of finance: a frontier of opportunity with minimal accountability. While stories of lost wallets and exchange hacks capture headlines, the deeper issue is systemic: when markets operate without enforceable standards for transparency and oversight, bad actors thrive.

Digital assets can drive economic inclusion, particularly in emerging markets across Africa. But that potential is limited if fear of fraud, theft, or criminal misuse overshadows the benefits. Regulation that prioritises financial safety protects consumers and strengthens trust—a prerequisite for widespread adoption.

Regulatory Momentum: Kenya and Ghana Take a Stand

Recognising these risks, several African countries have moved beyond debate and implemented decisive measures. Kenya and Ghana stand out as leaders, enacting comprehensive digital asset regulatory frameworks in 2025. At a time when many developed markets still struggle to balance innovation with enforcement, African regulators are showing that clarity is achievable. These frameworks are deliberate, consultative, and designed for sustainable market growth.

In Kenya, the Virtual Asset Service Providers Bill, formalised in November 2025, made the country one of the first in the region to clearly define licensing, compliance expectations, and supervisory oversight for Virtual Asset Service Providers (VASPs). Yellow Card’s team contributed significant input to ensure the law supports innovation while enforcing robust AML and CTF safeguards.

Similarly, Ghana’s Virtual Asset Service Providers Bill, 2025, which received presidential assent in December 2025, marked a historic milestone. For years, Ghana’s digital asset market had operated in a gray area, widely used but legally uncertain. With the VASP Bill, cryptocurrency activities are now formally legalised and regulated. Oversight responsibilities are distributed across the central bank, securities regulator, and financial intelligence unit, ensuring identity verification, transaction monitoring, and illicit flow prevention. These laws do more than confer legitimacy—they protect individuals, businesses, and the broader financial system.

Why Regulation Matters: Financial Safety and Security Aren’t Optional

Financial crime is not merely a compliance concern for multinational corporations; it is a real threat affecting individuals, firms, and economies. Fraud and money laundering erode consumer confidence, divert capital from productive use, and distort markets. In the digital asset sector, unregulated exchanges and opaque operations exacerbate these risks.

Regulatory frameworks like those in Kenya and Ghana create a “safe zone,” where innovation can flourish under clear standards. Mandatory Know-Your-Customer (KYC) protocols verify identities. AML and CFT processes detect and deter illicit flows. Coordinated oversight enables regulators and operators to combine on-chain analytics with traditional compliance tools, identifying suspicious activity in real time.

A Global Operator’s Perspective: Yellow Card’s Commitment to Safety

At Yellow Card, we operate in 34 markets, with a presence in 20 African countries and strategic relationships across Europe and the US. This global footprint exposes us to some of the world’s most sophisticated regulatory regimes. We view financial safety and security not as optional, but as prerequisites for responsible, scalable operations.

We have implemented robust risk and financial crime programmes, including advanced identity verification, transaction monitoring, and real-time risk scoring. These systems are deployed daily to protect users and reinforce trust in the digital economy.

The Future Depends on Safe, Secure, Accountable Markets

As digital assets integrate further with traditional finance and everyday commerce, the stakes for financial integrity will rise. Jurisdictions that act decisively with transparent, enforceable regulations and international cooperation will unlock broader economic potential. Those that delay risk stagnation and uncertainty. Policymakers must focus not on whether to regulate digital assets, but on how swiftly and effectively. Clear rules today prevent crises tomorrow.

Regulation that confronts financial crime does not stifle innovation—it enables it by eliminating fear and building trust. For Ghana, Kenya, and other forward-thinking nations, the message is clear: the future of finance must be safe to be sustainable. When safety is non-negotiable, everyone benefits—consumers, businesses, and the economy at large.