According to the Nigerian Securities Exchange Commission (SEC), many Nigerian youths are embracing cryptocurrencies because of the secretive nature of the transactions.

 

“Secrecy of crypto usage is what is driving its adoption by the youth. Some people don’t have bank accounts but they have a crypto wallet. Crypto is like air, can you cage it? No. What you can do is to build a risk management around it,” said Director-General of the Commission, Dr Emomotimi Agama.

 

According to the official, the local cryptocurrency market is valued at over $400 million with 33.4% of Nigerians using or owning cryptocurrencies noting that the commission would continue to educate investors on the risks associated with digital assets to be able to make wise investment decisions.

Agama, who spoke at the first Annual Conference of the Association of Capital Market Academics of Nigeria (ACMAN) on June 28 2024 in Abuja, Nigeria, also reiterated that the SEC is the body with the mandate over the regulation of cryptocurrencies and other digital assets.

 

“The lack of a comprehensive regulatory framework has created uncertainty, which can deter both investors and innovators. Cybersecurity threats, including hacking and fraud, pose significant risks.

A substantial portion of the population lacks adequate financial literacy, making them vulnerable to scams and risky investments,” he explained.

 

The comments come only a few days after the commission issued a notice to operators that it was amending its rules on Digital Asset Issuance, Offering Platforms, Exchange and Custody. According to him, the regulatory landscape for cryptocurrency is not yet firm even in the United States. 

 

REGULATION | Nigeria SEC Issues a Notice for Onboarding VASPs in 30 Days Due to ‘Current Realities’

Following the 30-day-period, the Commission indicated that it would commence enforcement action against any operating VASP that fails to comply with the directives.… pic.twitter.com/ThvMC4MwFQ

— BitKE (@BitcoinKE) June 22, 2024

 

Still speaking at the same event, the SEC chairman, Mr. Mairiga Katuka, said the introduction of crypto presents an advantage for the markets, urging all to chart a course forward for Nigeria with its vibrant financial markets.

 

“Together we can drive the development of a vibrant resilient capital market in line with President Bola Tinubu’s dream of making Nigeria a prime investor destination.”

 

 

 

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The U.S. Securities and Exchange Commission (SEC) could approve exchange traded funds (ETFs) tied to the spot price of Ether as soon as July 4 2024, new reports indicate.

Just over a month ago, the SEC granted accelerated approval to 3 stock exchanges to list and trade shares of Ether ETFs, paving the way for eight individual applications to be approved.

 

MILESTONE | United States Securities Regulator Approves Listing of #Ether ETFs on Major Stock Exchanges

According to local reports, the approval of listing on 3 exchanges, #NYSE #NASDAQ, and #CBOE, will see 8 institutional ETF products potentially list their ETF products, but… pic.twitter.com/NVgmQCshL9

— BitKE (@BitcoinKE) May 24, 2024

The eight asset managers, including:

BlackRock (BLK.N)

VanEck

Franklin Templeton (BEN.N), and

Grayscale Investments

are now in the final stages of the approval process, says Reuters, with sources indicating that it was ‘down to the finishing touches’ and that approval is ‘probably not more than a week or two away.’

 

“Executives at two firms, who requested anonymity due to the confidential nature of the discussions, said the process of amending the offering documents has progressed to resolving only ‘minor’ issues. Those documents must be approved before the ETFs can be launched.”

– Reuters

 

An exchange-traded fund (ETF) is one of the investment products that is traded on a stock exchange. It enables investors to purchase shares that mirror the price of an underlying asset which can range from gold and foreign currencies to cryptocurrencies and technology stocks.

 

EXPLAINER: Crypto ETFs are Here, But What are They Really? https://t.co/Btwtvrn20t #BitcoinETF

— BitKE (@BitcoinKE) October 31, 2021

A spot Ethereum ETF, similar to a Bitcoin ETF, would involve a fund manager handling the purchase and storage of ETH digital coins, allowing individuals to buy shares that reflect their value. This would provide investors with exposure to the second-largest cryptocurrency by market capitalization.

In the latest amendments to their applications, issuers aiming to launch spot Ether ETFs have clarified to the United States Securities and Exchange Commission that they will not stake $ETH held by the funds. Staking Ether involves depositing $ETH to help secure the Ethereum blockchain — and earning yield in exchange.

 

REGULATION | Spot Ether ETF Applicants Commit to Not Staking $ETH Ahead of SEC Decision

“Neither the trust, nor the sponsor, nor the custodian, nor any other person associated with the trust will, directly or indirectly, engage in action where any portion of the trust’s ETH… pic.twitter.com/IhaDE04Pf7

— BitKE (@BitcoinKE) May 23, 2024

ETFs came to the fore in January 2024 when the United States Securities and Exchange Commission (SEC) approved 11 BTC products. These have nearly $38 billion in assets, as of now, although the holdings of Grayscale Bitcoin Trust – which converted its $27 billion bitcoin trust into an ETF at the same time – dipped to $17.8 billion.

 

MILESTONE | ‘We Do not Approve Nor Endorse Bitcoin,’ Says United States SEC as it Approves 11 Spot #Bitcoin ETFs

This development represents a historic milestone in the integration of Bitcoin into traditional financial markets.

Below are the 11 approved products.… pic.twitter.com/Zn41cG9Ji0

— BitKE (@BitcoinKE) January 11, 2024

 

 

 

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Nigerian fintech company, Carbon, has shut down its debit card operations in Nigeria two years after its launch.  

According to Carbon’s Co-Founder and CEO, Ngozi Dozie, he was now not sure why all neobanks are introducing cards.

 

“When I take a step back with the benefit of hindsight (and a card operation bill denominated in USD $), I question why practically all neobanks are pushing cards or even getting into it. Was this the right strategy for ALL of us, or was Carbon just unlucky?” Dozie wrote in Substack.

 

Reflecting on the decision, Dozie pointed out that many founders often make the mistake of launching products without thorough analysis. He admitted that had he properly evaluated the industry beforehand, he would not have initiated the card operations. In hindsight, Dozie recognized that Nigerians already had numerous debit card options available to them.

 

“If I had done the analysis…and truly evaluated the opportunity, I don’t think I would have been that gung-ho about pushing a strategy to provide consumers with their fifth debit card. The decision might have been the same, but perhaps with more respect for the potential risks,” he wrote.

Maybe I had a scoop that if we launched a debit card, customers would trust Carbon more. Because, hey—just like those big banks you trust, I have the same bright, shiny card, marketed on billboards with happy-go-lucky youth with funky haircuts and bright clothing.” 

 

Today, many fintechs in Nigeria including Kuda, MoniePoint, and OPay have introduced debit cards for their customers, in their case powered by Verve, Africa’s largest card scheme by Interswitch with acceptance in Nigeria, across Africa, Europe and America.

Carbon, in contrast, previously partnered with VISA, an international card provider, for its card offering.

 

 

 

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Spot bitcoin exchange-traded funds in the U.S. reported $21.52 million in net inflows on June 26 2024, continuing the positive streak that began the previous day.

According to data from SoSoValue, Fidelity’s FBTC led the day with the largest net inflows at $19 million. Grayscale’s GBTC was second with net inflows of $4 million, marking its first positive inflow since June 5 2024. VanEck also saw inflows of $3 million on June 26 2024.

On the other hand, Ark Invest and 21Shares’ ARKB were the only ones to record net outflows for the day, amounting to $5 million. Funds from BlackRock, Bitwise, Valkyrie, and others had no net flows.

ETFs record 2nd straight day of positive net flow

Since their launch in January 2024, spot bitcoin ETFs have accumulated $14.44 billion in net inflows and were a large reason for BTC’s record – breaking growth for 2024.

 

MILESTONE | #Bitcoin Hits $70,000 for the First Time in History

The recently approved U.S. spot #Bitcoin ETFs have been popular and are likely the significant driver of the cryptocurrency’s price movement.https://t.co/4aKSlbDOGy #BitcoinETF pic.twitter.com/wiU1AuLyEr

— BitKE (@BitcoinKE) March 12, 2024

However, over the past week, the leading cryptocurrency has fallen more than 6% according to CoinGecko. Overall, the global crypto market cap has slipped 4.4% in the last day, bringing its market cap to $2.24 trillion.

Bitcoin Price Has Slipped 6.6% in the Last 7 Days

Moreover, a Monday announcement that Mt. Gox creditors will start receiving repayments in Bitcoin and Bitcoin Cash next week, coincided with Bitcoin dropping below $60,000 for the first time since early May 2024, as the market projected an upcoming selling pressure.

Mt Gox consolidated 141,000 BTC, worth around $9 billion, from multiple cold wallets to a single address in May 2024.

 

#BITCOIN | Over 141K BTC Supply May Hit the Market as Mt Gox Prepares to Make Distributions

The defunct crypto exchange reportedly transferred over, 141K BTC, worth over $9 billion, from its cold wallets, bringing some panic to the market.

Launched in 2010, Mt. Gox quickly… pic.twitter.com/OTZMtty1pm

— BitKE (@BitcoinKE) June 20, 2024

That said, analysts say selling pressure from Mt. Gox’s newly announced repayments could be much less than market observers fear. According to Galaxy Research, a significant portion of the distributed Bitcoin may not be immediately sold, as most will likely be held by creditors due to their low-cost basis.

 

 

 

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Connect Money, a banking-as-a-service fintech company focused on embedded finance services, has closed a seed funding round worth $8 million to help it scale operations across Africa.

The round was co-led by Egypt-based VCs:

DisrupTech Ventures

Algebra Ventures and

Lorax Capital Partners

with participation from:

One Stop Capital, and

MDP

Consequently, the young fintech is now plotting growth within and outside Egypt, including in markets like Morocco and Kenya.

Launched in early 2024, Connect Money provides a comprehensive white-label card issuing platform that enables businesses to provide their customers with debit and credit cards without the need to develop fintech infrastructure or obtain regulatory licensing.

 

“This significant seed investment underscores our hyper-growth potential as we strive to eliminate existing pain points for businesses aiming to become financially enabled,” said Ayman Essawy, Co-Founder and CEO of Connect Money.

 

According to Essawy, Connect Money has many use cases in various spaces, including agriculture where, for instance, supply chain companies can provide white-label cards and become banks for farmers.

 

“Basically, the whole value proposition sits at connecting those businesses to cash users. So we are talking about embedded finance as the core market,” he said.

 

The startup joins a handful of fintechs in the nascent BaaS space in Africa, including Nigeria’s Anchor and Kenya’s Pezesha which are making financial services easily accessible to the masses by enabling businesses to provide tailor-made financial services to their consumers.

 

“We have seen this in Amazon with the payment services and in many other digital platforms. We believe that even traditional businesses are capable of banking their customers and increasing consumer stickiness, to eventually become real banks. This is what we are trying to build; a one-stop shop for traditional and digital businesses so that they don’t have to build the infrastructure or invest millions in CapEx.”

 

 

FUNDING | Nigerian Embedded Finance Fintech, Anchor, Raises $2.4 Million After 30% MoM Revenue Growth

Anchor made its public debut in August 2022 after raising $1 million pre-seed funding round and its inclusion in the Y Combinator summer cohort. Since then, the company says…

— BitKE (@BitcoinKE) September 7, 2023

 

 

 

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The valuation of Nigerian fintech startup, Opay, has increased by 30% since its Series C funding round in 2021, according to recent corporate filings by Opera.

As reported by BitKE in 2021, the $400 million series C round was led by SoftBank’s Vision Fund 2, valuing OPay at $2 billion.

 

SoftBank Makes First Move in Africa with $400 Million Investment in Mobile Payments Platform, OPay, Now Valued at $2 Billion: https://t.co/qWWk5hRqV3 @SoftBank @opera @OPay_NG

— BitKE (@BitcoinKE) August 24, 2021

Opera, the software company headquartered in Oslo, Norway, which is also behind the Opera browser, acquired the Nigerian fintech in 2018, then called Paycom, and rebranded it to Opay.

Opay offers a wide range of payment services, including money transfer, bill payment, airtime & data purchase, card service, and merchant payments, among others. Its agent banking approach provides technology to a network of thousands of agents that facilitate the sending and receiving of money as well as payment of bills.

According to a local Nigerian publication, Opera’s stake in Opay has gradually declined over the years, falling to as low as 6.4% in 2021.

Opera’s ownership stake would rise to 9.4% in early 2023 after it sold its Asian fintech subsidiary, Nanobank, to OPay in exchange for equity. After completing the transaction, Opera’s 9.4% stake was valued at $253 million, as indicated in an April 2024 filing with the U.S. Securities and Exchange Commission (SEC).

This valuation suggests that OPay is now valued at $2.7 billion, up from its previous valuation of $2 billion during its last funding round.

This comes as the company enjoyed a good 2023 when, due to shortage of hard currency notes, Nigerians turned to fintech applications for payments. The situation, brought about by the Central Bank’s controversial move to redesign currency notes, proved a major benefit to companies like Opay.

 

Nigeria Unveils Newly Re-Designed Bank Notes – The First Time in 19 Years Redesigning the Naira

The measure is expected to mop up excess cash from circulation – over 85% of the money in circulation is outside the vaults of commercial bankshttps://t.co/uh85iwYwVr

— BitKE (@BitcoinKE) November 25, 2022

The company ‘quadrupled its user base through 2023 and grew revenue by over 60% on a constant currency’ basis, Opera told shareholders.

 

 

 

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Kenya’s controversial finance bill that has attracted a new wave of protests in the country will affect the economy largely due to its direct taxes, experts opine.

According to local reports, the government said it was dropping some direct-to-consumer measures amid a public outcry last week.

Some of the controversial provisions initially put forward included a plan to introduce a 16% sales tax on bread and 25% duty on cooking oil. There was also a planned increase in the tax on financial transactions as well as a new annual tax on vehicle ownership amounting to 2.5% of the value of the vehicle.

But according to Raimond Molenje, the acting CEO of the Kenya Bankers Association, the increased taxation on businesses means the environment will still be harsh for the ordinary citizen of Kenya.

 

“Most of the proposals in the Finance Bill 2024 are indirect taxes. Taxes on business which ultimately move to the final consumer,”  Raimond Molenje, Acting CEO, Kenya Bankers Association (KBA), said  recently.

“The transaction costs are going up significantly, from 15% to 40%. People will start looking for other options of moving out of the financial ecosystem.”

 

KENYA FINANCE BILL 2024 |

“Most of the proposals in the Finance Bill 2024 are indirect taxes. Taxes on business which ultimately move to the final consumer.

The transaction costs are going up significantly, from 15% to 40%. People will start looking for other options of moving… pic.twitter.com/Rnhq0wXbeb

— BitKE (@BitcoinKE) June 25, 2024

For example, according to the ride-hailing sector, the implementation of the Significant Economic Presence Tax (SEP), the motor vehicle tax, and the tax on batteries will cost about 50, 000 jobs. That’s before the additional proposal to raise the road maintenance levy on fuel, just a year after the Finance Act 2023 raised VAT to 16% and with it took fuel prices to unprecedented highs.

 

“The government is shooting themselves in the foot because they increase the tax to increase their revenue. This will reduce the revenue that is already generated by ride-hailing companies,” says George Abasy, the Public Policy Manager at Bolt.

 

 

 

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In a new report titled “From ripples to waves: The transformational power of tokenizing assets,” McKinsey & Company says the tokenized market capitalization across asset classes could reach about $2 trillion by 2030.

This figure, which excludes cryptocurrencies and stablecoins will be driven mainly by a select group of financial assets.

 

“We expect the most prominent front-runners will include cash and deposits, bonds and ETNs, mutual funds and exchange-traded funds (ETFs), as well as loans and securitization,” said McKinsey.

“Our estimate is exclusive of stablecoins, including tokenized deposits, wholesale stablecoins, and central bank digital currencies (CBDCs) to avoid double counting, as these are often used as the corresponding cash legs in the settlement of trades involving tokenized assets.”

 

Mutual Funds

According to the report, tokenized money market funds have attracted over $1 billion in assets under management, signaling demand from investors with on-chain capital in a high-interest-rate environment.

The transition to on-chain funds can substantially increase utility, including instant 24/7 settlement and the ability to use tokenized funds as payment vehicles.

As the scope and magnitude of tokenized funds grow, additional product-related and operations benefits will materialize. For instance, highly tailored investment strategies would become possible through composability across hundreds of tokenized assets.

Loans and Securitization

Conventional lending is characterized by labor-intensive processes and high levels of intermediary involvement. Blockchain-enabled lending provides an alternative, with many benefits: live, on-chain data, held in a unified master ledger serving as the single source of truth, fostering transparency and standardization throughout the lending life cycle.

Smart-contract-enabled calculations of payouts and streamlined reporting reduce required cost and labor. Shortened settlement cycles and access to a broader capital pool enable faster transaction flow and potentially lower the cost of capital for borrowers.

 

Bonds and Exchange Traded Notes

Tokenized bonds with a total notional value exceeding $10 billion have been issued in the past decade, while the total outstanding notional value of bonds worldwide stands at $140 trillion, McKinsey says.

Digital bond issuance will likely continue given the high potential benefits once scaled, as well as comparably low barriers today, partially driven by an appetite to spur capital market development in certain regions. For example, in Thailand and the Philippines, the issuance of tokenized bonds enabled inclusion of small-ticket investors through fractionalization.

According to the report, tokenizing other asset classes will more likely scale only once the foundation has been laid by the aforemntioned asset classes or when a catalyst spurs advancement despite limited evidence for near-term benefits.

 

You can read the full report by McKinsey and company here.

 

 

 

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According to local reports, the Central Bank of Kenya (CBK) has bolstered its foreign exchange reserves significantly, now amounting to over $7.7 billion, marking a milestone for the country in the last 12 months.

According to the CBK in its Weekly Bulletin for June 21 2024, this reserve level represents an increase in the number of months of import cover, reaching 4.3 months. This surge in reserves reflects Kenya’s proactive approach to strengthening its financial stability and ability to manage external economic pressures effectively.

 

“The usable foreign exchange reserves remained adequate at USD 8,321 million (4.3 months of import cover) as of June 20 2024. This meets the CBK’s statutory requirement to endeavour to maintain at least 4 months of import cover,” CBK reported.

 

According to a local media outlet, CBK has reinforced its forex reserves with over KES 170 billion between May 31 and June 20 2024 given the Weekly Bulleting provided at the end of May 2024.

 

“The usable foreign exchange reserves remained adequate at USD 6,975 million (about KES 902 billion) (3.6 months of import cover) as of May 29 [2024]. This meets the CBK’s statutory requirement to endeavour to maintain at least 4 months of import cover.”

 

At the same time, the Kenya Shilling (KES) maintained a steady exchange rate against major regional and global currencies.

 

“The Kenya Shilling remained stable against major international and regional currencies during the week ending June 20. It exchanged at KES 128.65 per U.S. dollar on June 20, compared to KES 128.46 per U.S. dollar on June 13 [2024],” the apex bank said.

 

In early 2023, dollar scarcity in Kenya resulted in a 12% drop in value during the previous 12 months. This resulted in the Kenya Shilling trading at KES 147 to the dollar in March 2023.

However, since the start of the year [2024], the Kenya Shilling has appreciated by 17 percent against the dollar making it the best-performing African currency during this period.

The Shilling’s performance is being supported by revenue from agricultural exports and a decrease in dollar demand from importers.

The Kenya Shilling has also been supported by a rise in diaspora remittances. In the first four months of this year [2024], remittances increased by 20 percent to $1.6 billion (KES 205.8 billion), up from $1.34 billion (KES 172.4 billion) during the same period in 2023.

According to CBK Governor, Kamau Thugge, tightening the monetary policy has also helped increase investment inflows into the country.

 

 

 

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According to local reports, the National Identity Management Commission (NIMC) has listed five websites allegedly harvesting Nigerians’ data fraudulently. 

 

“NIMC urges the public to disregard any claims or services these websites offer and should not give their data as they are potentially fraudulent and data provided by the public on such websites are gathered and stored to build the data services they illegally provide,” said a statement issued by NIMC Head of Corporate Communication, Kayode Adegoke.

 

The 5 websites identified:

idfinder.com.ng

Verify.Ng/sign in

championtech.com.ng

trustyonline.com

anyverify.com 

Their revelation comes after an expose that the identification details including National Identification Number (NIN), Bank Verification Number (BVN), and other data of Nigerians on AnyVerify.com.ng for as low as N100. This website has monetised the recovery of NINs and personal information on the Nigerian identification database.

 

LIST | A Look at Identity Verification Startups Operating Across Africa

In this post, we’ll explore some of the key identity verification solutions making waves across the continent, revolutionizing the way businesses verify the identities of their users and customers.… pic.twitter.com/c6Fm3Agmr7

— BitKE (@BitcoinKE) May 14, 2024

In another expose in March 2024, the Foundation for Investigation Journalism (FIJ) said that XpressVerify.com, a private website, has unrestricted access to the National Identification Numbers (NINs) and personal details of every registered Nigerian.

Anybody can retrieve details such as phone numbers, full names, NIN, address, and photographs of any Nigerian whose data is on the National Identity Database with as low as N200.

The unauthorised access to personal data is a blatant infringement on the privacy of Nigerian citizens as the dissemination of such information could lead to identity theft, financial fraud, and other malicious activities, including data owners being targeted by burglars, kidnappers, or terrorists who buy data that includes home addresses.

Further, the availability of sensitive financial data online could undermine the stability of Nigeria’s banking system. 

However, the Commission (NIMC) stated that Nigerians’ sensitive data have not been compromised as claimed by Paradigm Initiative, adding that it has taken measures to strengthen the NIN database further.  

“At this moment, the Commission assures the public that the data of Nigerians has not been compromised, and the Commission has not authorized any website or entity to sell or misuse the National Identification Number (NIN) amongst all the identities stated in the report.” 

 

 

 

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French VC firm, Breega, has announced the launch of its first African fund, Breega Africa Seed I, which aims to become the leading early-stage investor in African startups.

The firm has now opened two new offices in Lagos, Nigeria, and Cape Town, South Africa, to manage its new pan-African fund Breega Africa Seed I.

Endowed with $75 million, the fund will invest in ventures in Nigeria, Egypt, South Africa, and Kenya, as well as several French-speaking African countries such as Morocco, Senegal, Ivory Coast, Cameroon, and the Democratic Republic of Congo (DRC).

Breega intends to invest amounts ranging from $100,000 to $2 million USD, positioning itself as the initial investor. The focus will be on high-impact, sustainable innovations aligned with the United Nations’ Sustainable Development Goals (SDGs), targeting key sectors such as:

agri-tech

Ed-tech

E–health

Fintech

Insurtech

Prop-tech, and

Logistics

Several of the continent’s leading startups, such as:

Numida

Socium

Klasha

Kwara

Coachbit, and

Sava

have already received initial investments and support from Breega’s in-house scaling team.

The new fund is led by Melvyn Lubega, Co-Founder of the digital education unicorn Go1, and Tosin Faniro-Dada, former CEO of Endeavor in Nigeria. Lubega will oversee Breega’s operations in Eastern and Southern Africa from the Cape Town office.

 

“Today, Africa receives one per cent of global funding for a region which is home to 18 per cent of the population of the planet. This is a large funding gap to close across a continent at the dawn of its technological potential. Breega, an international fund for founders built by founders, has a unique role to play in bridging this gap,” Lubega said.

 

Faniro-Dada is the partner in charge of West and North Africa, who will contribute her experience, notably as a board member of African fintech unicorn, Flutterwave.

 

“Africa is experiencing a boom in entrepreneurship, reflecting a surge of innovation and ambition across the continent. Our entrepreneurs are driven by the ambition to find solutions to the continent’s challenges. It is truly inspiring and I’m thrilled to be able to support them thanks to the unique model we’ve developed at Breega,” she said.

 

 

 

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WorldCoin, the cryptocurrency and human registration project associated with OpenAI CEO, Sam Altman, is reportedly set to resume operations in Kenya after police dropped a probe they had opened against WorldCoin.

The policies are said to have conducted investigations on an array of allegations into the activities of WorldCoin which was suspended in August 2023.  The investigations touched on the alleged unlawful collection and transfer of personal sensitive data.

 

“The resultant investigation file was forwarded to the Office of the Director of Public Prosecutions for an independent review and advice,” said a letter from the Directorate of Criminal Investigations (DCI) to WorldCoin, seen by the local Star newspaper.

“Upon review of the file, the Director of Public Prosecutions concurred and directed that the file be closed with no further police action,” the letter reads.

 

REGULATION | The Kenya Ministry of Interior and National Administration Suspends WorldCoin Activities Pending Risk Assesment

“The government has suspended forthwith activities of WorldCoin and any other entity that may be similarly engaging the people of Kenya until relevant… pic.twitter.com/ecePvfRWXL

— BitKE (@BitcoinKE) August 3, 2023

 

DCI is said to have further advised WorldCoin that for prudent continued operations, they consider proper business registration services in liaison with the Registrar of Business registry and proper licensing and Coordination by the Office of the Data Protection Commission (ODPC) and the Communication Authority of Kenya (CAK).

The police also recommended that they conduct thorough vetting and establish legal contracts with all third-party vendors operating within the country.

 

According to Thomas Scott, the company Operations Director:

“We are grateful for the DCI’s fair investigation and for the Director of Public Prosecutions’ determination to close the matter. This welcome result is, however, not an end but a beginning.

“We will continue working with the Government of Kenya and others and we hope to resume World ID registration across the country soon. For today, we are just pleased to return our focus to advancing Worldcoin’s mission: creating opportunities for people in Kenya and elsewhere to participate in the global economy,” he said.

 

The company lawyer had on May 21, 2024, written to the DCI to request an update on the status of the case.

As reported by BitKE in December 2023, the cryptocurrency project was set to resume operations in Kenya after talks with the government where an agreement was reached to allow the US-based firm to resume operations under new guidelines.

 

REGULATION | WorldCoin Reportedly Set to Return to Kenya in 2024 Following Talks with Government

Following the suspension of its services in Kenya in August 2023, a parliamentary committee that investigated its activities in the country found several breaches and… pic.twitter.com/HhXfhotFmy

— BitKE (@BitcoinKE) December 22, 2023

 

 

 

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The Kenyan shilling (KES) has risen to its highest level in 15 months against the dollar, supported by revenue from agricultural exports and a decrease in dollar demand from importers.

In early 2023, dollar scarcity in Kenya resulted in a 12% drop in value during the previous 12 months. This resulted in the Kenya shilling trading at KES 147 to the dollar in March 2023.

 

The Kenya Shilling Hits a New Low as Dollar Scarcity Bites – a 12% Drop in Value in 12 Months

According to local reports, importers are currently buying a dollar at up to KES 147 to the dollar causing an increase in commodity priceshttps://t.co/zZLUGLqpve #KES #Dollar

— BitKE (@BitcoinKE) March 20, 2023

Since the start of the year [2024], the Kenya Shilling has appreciated by 17 percent against the dollar, making it the best-performing African currency during this period.

According to the East African newspaper, the Central Bank of Kenya (CBK) quoted the exchange rate at an average of 128.66 on June 14 2024, a level last seen on March 8 2023.

A spot-check done by the newspaper on several commercial banks at the end of the week showed that they were selling dollars to retail clients at between KES 130.65 and KES 131.60, and buying the same at between KES 125 and KES 126.60.

 

“We have seen some inflows during the week from tea exports. The market’s sentiment around the shilling has also been positive due to expected loan inflows from the World Bank, and the early settlement of the Eurobond that was to fall due this month.” said a commercial bank forex dealer.

 

Earlier in February [2024], Kenya issued a $1.5 billion Euro-bond and spent the proceeds on partially buying back 2024 notes due in June 2024, relieving anxieties that the government would default on its debt obligations.

Moreover, in May 2024, the World Bank approved a significant loan to Kenya under the Fiscal Sustainability and Inclusive Green Growth Development Programme Operation. This loan will strengthen the CBK’s official forex reserves – once it purchases the dollars from the National Treasury – giving the monetary regulator greater ability to protect the Shilling from fluctuations.

The Kenya Shilling has also been supported by a rise in diaspora remittances. In the first four months of this year [2024], remittances increased by 20 percent to $1.6 billion (KES 205.8 billion), up from $1.34 billion (KES 172.4 billion) during the same period in 2023.

According to CBK Governor, Kamau Thugge, tightening the monetary policy has also helped increase investment inflows into the country.

 

 

 

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The Nigerian Securities and Exchange Commission (SEC) has issued a notice to amend its rules on Digital Asset Issuance, Offering Platforms, Exchange and Custody.

The notice, published on the organization’s website on June 21 2024, added that the SEC was opening a special onboarding window for such firms.

 

“The Commission hereby provides a special window for the on boarding of Virtual Assets Service Providers [“VASPs”] tagged Accelerated Regulatory Incubation Programme [“ARIP”],” the circular reads.

“By this Circular, all operating and prospective VASPs are hereby directed to visit the SEC ePortal to complete the application process no later than 30 days from the date of this Circular.”

 

Following the 30-day-period, the Commission indicated that it would commence enforcement action against any operating VASP that fails to comply with the directives.

Last month [May 2024], players in the local tech ecosystem speculated that the authorities were preparing more stringent regulations for cryptocurrency exchanges. This after the National Security Adviser (NSA) classified crypto trading as a national security issue.

 

REGULATION | Local Players Expect Nigeria to Ban Peer-to-Peer Crypto Trading Soon

Already, three Nigerian fintech startups – Moniepoint, Paga, and Palmpay – will block the accounts of customers dealing in cryptocurrency and report those transactions to law enforcement.… pic.twitter.com/2pk9AjrxWJ

— BitKE (@BitcoinKE) May 6, 2024

Exchanges operating in the country have been under scrutiny as authorities believe that crypto platforms facilitate speculation and potential manipulation of exchange rates. In late February 2024, the government ordered several services, including Coinbase, Quidax, and Binance, to stop operations.

 

REGULATION | Crypto Exchanges to Stop StableCoin Sales in Nigeria Amid Apparent Crackdown

“There was a meeting of crypto founders on Tuesday [February 27 2024] morning, and a number of them agreed to suspend the trades on their platform,” a person at that meeting told a local… pic.twitter.com/iiYBuYrpOu

— BitKE (@BitcoinKE) February 29, 2024

Binance has been in the eye of the storm, being accused of money laundering and tax evasion alongside 2 of its employees. Olayemi Cardoso, the Central Bank of Nigeria (CNB) Governor, alleged that ‘$26 billion has passed through Binance Nigeria from sources and users we cannot identify.’

However, Nigeria Federal Inland Revenue Service (FIRS) has withdrawn the tax evasion charges against the Binance officials, Tigran Gambaryan and Nadeem Anjarwalla.

 

REGULATION | Nigerian Revenue Service Withdraws Tax Evasion Charges Against Binance Officials

Following this, Binance which allegedly had an untaxed turnover of over $20 billion in Nigeria in 2023 alone, according to Nigeria Minister of Information, Idris Mohammed, will be… pic.twitter.com/XqvRrMgo16

— BitKE (@BitcoinKE) June 15, 2024

 

 

 

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According to a new 2024 compensation report by Request Finance shard with BitKE, the Web3 sector is becoming lucrative with finance professionals earning heftier packages than their colleagues in traditional industries.

The study interviewed accountants, CFOs, COOs, finance directors and managers, FP&A leaders, fractional CFOs & other finance roles working for Web3 companies.

 

“Web3 salaries surpass traditional fields, with CFOs (+17%), Finance Managers (+37%) or Accountants (+128%) earning significantly more than their web2 counterparts,” the report says.

“CFOs are the highest earners in Web3 finance, averaging $181,000 annually, compared to the overall average of $145,000.”

However, experience and location are key factors in compensation with 58% of U.S. respondents earning over $200,000 and those with over 20 years of experience receiving an average of $174,000, more than double of early career professionals.

Salaries are also affected by status within a company. CFOs naturally have the highest average salary, ($181,000) being the most senior financial position. The overall average for all Web3 finance roles is $145,000, but figures range significantly. The lowest annual base salary is $15,000, while 7 respondents earn more than $300,000. 91% of them have more than 6 years of experience.

 

The compensation is typically done in Fiat currencies, with 87% of respondents fully or partially paid in Dollars, Euros, or other fiat currencies.

Nearly half of Web3 finance professionals receive some or all of their remuneration in cryptocurrencies, with 42% of respondents being paid at least partly in crypto, such as stablecoins and/or company tokens

Majority of the professionals surveyed work for startups and small and medium-sized businesses (SMB)

When it comes to the age profile of finance workers in Web3, the overwhelming majority of respondents are in their thirties. Professionals under 30 and over 50 are poorly represented in this study.

 

You can access the full report here.

 

 

 

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Eagle-eyed investors have spotted wallets belonging to Mt. Gox, a collapsed crypto exchange, moving over $7 billion of the cryptocurrency.

The defunct crypto exchange reportedly transferred over, 141K BTC, worth over $9 billion, from its cold wallets, bringing some panic to the market.

According to the data from Arkham Intelligence, the exchange, which collapsed in 2014, transferred the assets in multiple transactions to an unknown address.

Launched in 2010, Mt. Gox quickly gained popularity and became the largest bitcoin exchange by 2013, handling 70% of all bitcoin trades globally. However, in early 2014, it halted all withdrawals and suspended trading. Shortly after, the site went offline, and the company filed for bankruptcy protection after losing over 800,000 bitcoins.

With its actions causing panic, former CEO, Mark Karpelès, assured people that the move was made to prepare for distributions to claimants. The Mt. Gox estate trustee subsequently released a statement echoing Karpelès’ sentiments.

The supply and demand dynamics of Bitcoin have been favourable to bulls recently. April 2024’s halving event reduced the number of new Bitcoin entering circulation, while the launch of #ETFs at the start of the year increased institutional demand.

Inflows to institutional crypto products reached a new all-time high of $14.9 billion for 2024 after jumping by $1 billion in a single week, according to Coinshares.

The more than 100,000 previously dormant Bitcoin that Mt. Gox’s trustees could imminently unleash on the market may swing the scales. 

According to CryptoQuant, currently, Mt. Gox’s Rehabilitation Trustee retain control of the new wallets, and no repayments have been made to creditors thus far, so no real impact. But with repayment to creditors targeted by October 31, 2024, these future repayments could sway Bitcoin’s market dynamics.

Some analysts however expect recipients to hold their coins.

 

 

 

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Kenyan fintechs, M-PESA and Pezesha, are reportedly coming together to launch Mkopo wa Pochi, a new credit service which will allow small business owners to borrow money directly through their M-PESA business accounts.

Mkopo wa Pochi is already said to be available through an update to Safaricom’s M-PESA super app from June 2024, and it will complement Pochi la Biashara, Safaricom’s business wallet for small business owners.

Mkopo wa Pochi leverages the strengths of both companies:

Safaricom’s Pochi la Biashara, which has over 632,000 active merchants, processed $564 million (KES 73 billion) in transactions and generated $6 million (KES 800 million) in revenue for the operator between March 2023 and March 2024.

Pezesha, on its part, is a digital lending infrastructure and platform that provides credit financing solutions to medium, small, and micro enterprises startups (MSMEs) in Kenya, Uganda, Ghana and Rwanda.

 

Pezesha Among the First 3 Fintechs Admitted into the Kenya Regulatory SandBox: https://t.co/VyopsqbtFT @PezeshaKenya @CMAKenya #SandboxKE

— BitKE (@BitcoinKE) August 1, 2019

Pezesha, which operates a digital lending marketplace for small businesses, is renowned for its credit partnerships and digital lending expertise and has collaborated with local companies Marketforce, Kyosk App, and Rocket Health.

Pezesha will assess Pochi la Biashara customers’ creditworthiness using tools like credit bureaus that list loan defaulters.

 

“Pezesha may make a credit assessment after considering information from various sources, including but not limited to, your business transaction history with Safaricom, your mobile money account transaction history, your credit information from the Credit Reference Bureau, your history of use of the product and prevailing market conditions,” Safaricom says in the product’s terms and conditions page.

 

Mkopo wa Pochi loans come with a one-time access fee of 2.76% on the borrowed amount. Borrowers have a 7-day term with an optional 7-day extension. Extending the loan incurs a one-time fee of 3.85% for the entire 14-day period, and late repayments are subject to a 1% daily penalty for up to 7 days.

In 2022, as reported by BitKE, Input Output Global (IOG), the company behind the Cardano blockchain, invested in Pezesha as part of a list of investors which saw the company raise $11 million in Series A to expand its operations in Africa. Pezesha’s partnership with Cardano is expected to see the company build a peer-to-peer financial operating system in Africa.

 

Pezesha, a Kenyan Leading Digital Lending Platform, Raises $11 Million, with Investment from Cardano #Cardano #cardanofeed #ADA #crypto #cardanocommunity #bitcoin #CoinMarketCap #blockchain #cryptocurrency #CardanoADA #btc $ADAhttps://t.co/605TTQs6AS

— Cardano Feed ($ADA) (@CardanoFeed) August 31, 2022

 

 

 

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South Africa’s Standard Bank has reported a 121% increase in the number of offshore accounts opened since June 2023, according to a statement seen by a local outlet.

According to bank officials, clients are seeking to diversify their assets across borders to protect themselves from unforeseen events and uncertainty.

 

“With domestic events like local elections, the energy crisis, and general economic uncertainty, we have noted an increase in enquiries over the past three years,” says Bridgette Kruger, Head of Private Banking clients at Standard Bank.

“However, we generally find that clients wish to diversify across borders to protect themselves from unforeseen events and uncertainty by placing some of their wealth offshore.”

 

Kruger adds that clients also want exposure to international markets and a hedge against fluctuations in local currency.

The rise in offshore limits under Regulation 28 of the Pension Funds Act in 2022 has also allowed South Africans more opportunities to diversify internationally. Retirement funds can now invest 45% of their members’ money outside of South Africa, up from the previous limit of 30%.

 

“It is possible that this increased offshore exposure makes people see a need to open offshore bank accounts,” says Kruger.

 

Additional reasons for opening offshore accounts include travel where clients prefer to save in hard currency to avoid exchange rate fluctuations, aspirations to retire overseas, children studying abroad, and geopolitical risks that necessitate offshore exposure to safeguard investments.

South Africa’s Standard Bank Group ranked as the leading bank in Africa, according to the level of tier 1 capital, which consists of core capital, reserves, retained earnings, and minority interests. With operations in 20 countries in the continent, the bank group registered a capital of $13.2 billion U.S. dollars as of the end of 2022.

The National Bank of Egypt followed, with 7.3 billion U.S. dollars in tier 1 capital as of June 2021.

 

 

 

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According to a post by the National Bank of Ethiopia, the country’s Council of Ministers has approved 2 major laws that are set to bring further liberalization and modernization of the country’s financial sector.

 

The Council of Ministers today approved the draft NBE Proclamation and Banking Business Proclamation https://t.co/rxRw1Ub3Gx pic.twitter.com/522G3GpIZK

— National Bank of Ethiopia (@NBEthiopia) June 14, 2024

The two bills that still need to be ratified by the House of Representatives are the draft banking business proclamation, which allows granting foreign banks with licenses to operate in Ethiopia and National Bank of Ethiopia (NBE) proclamation.

Among other things, the NBE proclamation establishes a legal framework for the introduction of a central bank digital currency as necessary. According to an earlier report, the National Bank of Ethiopia (NBE) is set to initiate a study on the use of a Central Bank Digital Currency (CBDC in June 2024.

The Ethiopian central bank classifies digital currencies, including Bitcoin and other cryptocurrencies, as illegal but the government has recently licensed dozens of data mining firms, many from China, looking to Ethiopia as a base of operations for its low electricity tariffs.

 

Chinese #Bitcoin Miners Shift Focus to #Ethiopia After 2021 Beijing Ban

Despite #Ethiopia’s ban on cryptocurrency trading, it permitted #Bitcoin mining from 2022 onward.https://t.co/H8eXHU2tZ9

— ₿itcoin Xoe (@Bitcoin_Xoe) March 23, 2024

The banking business proclamation itself allows granting foreign banks with licenses to operate in Ethiopia. Ethiopia’s banking industry is dominated by the state-owned Commercial Bank of Ethiopia, with a total of 32 locally-owned banks in the sector.

The decision comes nearly two years after the Prime Minister Abiy Ahmed’s cabinet adopted a policy to open the banking sector to foreign investors, as reported by BitKE.

 

Ethiopia Opens Local Banking Sector to Foreign Players

Currently, atleast 18 local commercial banks are reportedly operating in Ethiopia’s banking sectorhttps://t.co/Nsr1dneP3J

— BitKE (@BitcoinKE) September 17, 2022

The Central Bank has been making legislative changes to implement a new policy and plans to issue up to five banking licenses to foreign investors over the next five years, local reports indicate. This includes amending the Banking Business law which was discussed by the ministerial council on June 14 2024.

According to a statement from the Prime Minister’s Office, the draft law was prepared in response to recent economic and technological developments in the global financial industry, as well as the policy change. It establishes a legal framework and control mechanisms for issuing banking licenses to foreign investors and managing the process.

Under this law, foreign investors can enter the banking business by opening foreign bank subsidiaries, branches, or investing in shares of existing domestic banks. Representatives of foreign banks will be regulated by the National Bank.

The council unanimously voted to endorse the draft laws and forward them to parliament for ratification.

 

 

 

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Local Nigerians maintain interest in cryptocurrencies despite an ongoing crackdown on digital asset exchange platforms, with bitcoin and meme coins like DogeCoin dominating in various regions.

According to an analysis published by a local outlet, the primary motivation for cryptocurrency traders and owners in Nigeria is financial gain and hedging against the volatile situation in the country’s fragile foreign exchange (FX) market.

Moreover, the crypto industry has continued to facilitate millions of dollars worth of transactions despite obstacles like the recent clampdown on p2p trading on exchanges. The rigid foreign exchange policies and expensive transaction fees compared to other emerging markets are also making people use cryptos.

 

REGULATION | Crypto Exchanges to Stop StableCoin Sales in Nigeria Amid Apparent Crackdown

“There was a meeting of crypto founders on Tuesday [February 27 2024] morning, and a number of them agreed to suspend the trades on their platform,” a person at that meeting told a local… pic.twitter.com/iiYBuYrpOu

— BitKE (@BitcoinKE) February 29, 2024

Looking at the breakdown in terms of individual crypto popularity across the vast country, interest in DogeCoin is particularly strong in Nigeria’s conservative northern states of Katsina and Borno. Additionally, these states, along with Akwa Ibom, Jigawa, and Yobe, exhibit significant interest in Solana.

Bitcoin (BTC) is popular in Nigeria’s Delta State, with Anambra, Bayelsa, Edo, and Rivers states also showing significant interest. The analyst noted an apparent correlation concerning the strong Bitcoin preference in Delta State, which is the origin of some of Nigeria’s leading economic figures such as Dr. Ngozi Iweala, Jim Ovia, and Tony Elumelu.

Nigerians in states with limited banking services tend to prefer the stablecoin, USDT, with the stablecoin said to be highly sought after in the states of Ebonyi, Anambra, Jigawa, Bauchi, and Enugu, the analyst said.

Meanwhile, Ethereum is the most popular cryptocurrency in the southeast region.

Lagos, Nigeria’s commercial capital does not feature in the top 10 of any of the cryptocurrency rankings, according to the analyst. This is despite being home to most of Nigeria’s crypto platforms, such as Quidax, and having a robust fintech presence.

 

 

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