By Linet Amuli - Reporter
Kenya, January 13 2026 - Africa is rapidly cementing its place as one of the world’s fastest-growing digital asset markets, driven by rising adoption, expanding use cases for stablecoins, and a gradual move toward clearer regulation across key economies.
According to insights from the 2025 Yellow Card Regulatory Report, the continent now counts more than 54 million digital asset users. Nigeria stands at the forefront, emerging as the global leader in stablecoin usage and ranking second worldwide for overall digital asset adoption, with an estimated 25.9 million users. Countries such as Kenya, Ethiopia, and Morocco have also secured positions among the world’s top 50 adopters, highlighting Africa’s growing influence in the sector.
Stablecoins play a particularly critical role across Sub-Saharan Africa, which records the highest adoption rate globally at 9.3%. These digital assets are widely used for cross-border transfers, access to U.S. dollar-denominated value, and protection against volatile local currencies, making them a practical financial tool rather than a speculative one for many users.
Despite strong growth, Africa’s regulatory environment remains uneven. The report groups countries into four broad categories: those with established frameworks, those actively developing regulations, jurisdictions with no formal rules, and countries where digital assets are effectively prohibited. Nigeria, South Africa, and Mauritius lead the way with structured legal regimes, while nations such as Kenya, Ghana, and Morocco are still refining their approaches. In contrast, several countries, including Algeria, Egypt, and Tunisia, continue to maintain restrictive stances.
Nigeria has taken notable steps by positioning its Securities and Exchange Commission as the primary overseer of digital assets. The regulator has introduced the Accelerated Regulatory Incubation Program to guide market participants and has reversed earlier banking restrictions on virtual asset service providers. South Africa has also made progress by regulating crypto assets under its Financial Advisory and Intermediary Services Act, with hundreds of licenses already issued. Recent legal clarity has further confirmed that crypto assets are not currently treated as traditional capital under exchange control rules.
More from Kenya
Elsewhere, East African governments are attempting to strike a balance between innovation and revenue generation. Kenya has proposed comprehensive digital asset legislation, though a planned transaction tax has raised concerns about its potential impact on adoption. Ethiopia, once firmly opposed to crypto activity, has shifted its stance by granting regulatory authority to the National Bank of Ethiopia.
Southern Africa and island states are also strengthening oversight. Botswana has updated its virtual asset laws to align with international standards, Mauritius continues to license service providers under its dedicated framework, and Namibia introduced a formal licensing system in 2023.
Across the continent, compliance with anti-money laundering standards and adoption of the FATF Travel Rule are becoming increasingly common. At the same time, several central banks are exploring digital currencies as a means to enhance financial inclusion. While fragmented oversight in regions such as Central Africa remains a challenge, growing regulatory clarity and international acceptance are expected to attract further investment and accelerate adoption in the years ahead.
