Binance Sees Regulation as Key to Africa's Crypto Boom

Africa's cryptocurrency market is entering a new phase as regulators establish clearer rules for digital assets. Binance's Larry Cooke says the exchange sees regulation as essential to the industry's next phase.

Crypto adoption has been rapid in Africa, with people using digital assets to move money across borders and access financial services outside traditional banking systems. However, regulators are now catching up, with countries moving to establish clearer rules for the industry.

Larry Cooke believes an ideal regulatory model for Africa should be risk-based, technology-neutral, and harmonised across borders. He suggests governments license and supervise crypto exchanges, custodians, stablecoin issuers, and other virtual-asset service providers while allowing lower-risk blockchain innovation to develop through dynamic sandboxes and proportionate rules.

Cooke notes that this approach is consistent with FATF guidance, which calls for countries to assess risks and license or register VASPs rather than applying a one-size-fits-all prohibition. He emphasizes the need for regional regulatory coordination to allow businesses to operate across markets without facing completely different rules in every country.

The goal should be to regulate the risks, not the technology, and protect consumers and financial stability while still allowing blockchain to support payments, remittances, investment, and financial inclusion.