Africa Embraces Crypto Rules As India Stays Cautious
In contrast to India's circumspect and wary approach towards cryptocurrency, an increasing number of African countries are moving to regulated acceptance of cryptocurrencies, creating one of the world's most dynamic digital asset policy landscapes. This is particularly significant since most of these countries were at the same position of wariness as India on crypto.
India continues to rely on taxation and anti-money laundering oversight without introducing a comprehensive licensing framework. Currently, cryptocurrency is treated as a VDA (virtual digital asset) and operates in a regulatory and legal grey area in India, though it is taxed at 30 per cent with a four percent cess, totalling at around 33 percent.
In a recent presentation made by the RBI to a parliamentary committee on VDAs, lawmakers were urged to distinguish between crypto and tokenised real-world assets (RWAs). At the heart of the RBI's submission is a clear policy distinction. The central bank argued that speculative crypto assets and privately issued stablecoins should not be conflated with tokenized versions of regulated financial instruments such as government securities, corporate bonds and other real-world assets.
The RBI warned lawmakers against framing legislation that could inadvertently impede tokenization projects with legitimate economic uses. Instead, it said policy should preserve room for innovation in blockchain-based capital markets while continuing to ring-fence the financial system from cryptocurrencies that it says lack underlying economic value.
South Africa has emerged as the continent's regulatory leader after classifying crypto assets as financial products and requiring Crypto Asset Service Providers (CASPs) to obtain licences from the Financial Sector Conduct Authority (FSCA). Authorities are now expanding oversight further by proposing to bring crypto assets within the country's exchange control regime, meaning cross-border crypto transfers could soon require regulatory approval. Officials are also studying frameworks for stablecoins and tokenised assets, signalling a shift from simply supervising exchanges to integrating digital assets into mainstream financial regulation.
Kenya has followed a similar trajectory. After years of rapid crypto adoption driven by its thriving fintech sector, Nairobi has enacted legislation creating a licensing and supervisory framework for virtual asset service providers under the oversight of the Central Bank of Kenya and the Capital Markets Authority. The country is now drafting regulations aimed at balancing innovation with consumer protection and anti-money laundering compliance.
Zimbabwe, where cryptocurrencies gained popularity as a hedge against years of hyperinflation and currency instability, has also reversed its earlier hardline stance. The government last month introduced its first dedicated crypto regulations, requiring exchanges, custodians and other virtual asset businesses to register annually with the Financial Intelligence Unit and comply with anti-money laundering rules. The move replaces years of regulatory uncertainty after banks were barred from processing crypto transactions in 2018.
The policy shift reflects broader growth across the continent. According to blockchain analytics firm Chainalysis, Sub-Saharan Africa recorded more than $205 billion in on-chain cryptocurrency transactions between July 2024 and June 2025, a 52% increase from the previous year. Regulators increasingly view licensing and compliance as preferable to pushing activity into informal peer-to-peer markets.
Rather than introducing dedicated crypto legislation, New Delhi has focused on taxation, financial surveillance and consumer warnings. Crypto gains remain subject to a 30% tax and a 1% tax deducted at source on transactions, while virtual digital asset service providers must register with the Financial Intelligence Unit under anti-money laundering rules. The government has repeatedly said it prefers international coordination before introducing a full regulatory framework, while the Reserve Bank of India continues to advocate strict separation between the regulated financial system and speculative crypto assets.
The contrast is becoming increasingly pronounced. African regulators are largely attempting to bring crypto activity into the formal financial system through licensing, prudential supervision and disclosure requirements, whereas India's framework emphasises monitoring, taxation and risk containment without formally recognising crypto assets as financial products.
The divergence could become more significant as countries begin regulating stablecoins and tokenised real-world assets separately from speculative cryptocurrencies. South Africa's ongoing work on tokenisation and stablecoin policy mirrors a broader global trend towards distinguishing blockchain-based financial infrastructure from unbacked crypto assets — a distinction that is also beginning to feature in India's policy discussions, even as policymakers remain reluctant to legitimise cryptocurrencies themselves.