As the digital asset space gains momentum across the globe, Africa is emerging as a strategic hub for innovation, investment, and regulation in the crypto industry. This week’s headlines—highlighted in our Africa Crypto News Week in Review—shed light on key developments including Circle backing an African fund, South Africa formalizing crypto tax laws, and Nigerian startup Kredete securing an impressive $22 million in seed funding.
Circle Backs African Fund to Advance Financial Inclusion
Circle, the issuer of USDC, has reaffirmed its commitment to financial inclusion in Africa by backing the Africa-focused venture fund managed by the African Development Bank and Adaverse. Designed to empower early-stage Web3 startups, this fund will drive broader access to digital financial services across the continent. As stablecoins like USDC gain traction for remittances and payments, Circle’s investment underscores a growing belief that blockchain can bridge financial gaps in underserved communities.
Jeremy Allaire, CEO of Circle, emphasized the transformative potential of Web3 technologies for Africa’s evolving digital economy. By supporting local entrepreneurs and fintech ecosystems, Circle not only gains market access but also helps expand crypto adoption in markets with high barriers to traditional banking.
South Africa Adopts New Crypto Tax Laws
In a significant move toward regulatory clarity, South Africa has officially enacted new tax laws targeting digital assets. Under the new framework, crypto exchanges operating in the country are now required to report user transactions to the South African Revenue Service (SARS). This initiative seeks to increase transparency, reduce tax evasion, and integrate crypto more formally into the national financial system.
For investors and crypto holders in South Africa, the new regulations bring both opportunities and responsibilities. While the formalization may deter bad actors, it also legitimizes the asset class, opening the door for institutional involvement and broader public trust. Accountants and financial advisors are urging clients to review their crypto holdings and ensure tax compliance in the 2024 fiscal year.
Kredete Raises $22M to Expand AI-Powered Credit Solutions
Nigerian fintech Kredete has successfully raised $22 million in seed funding to scale its AI-driven loan assessment platform tailored for Africa’s informal economy. Kredete aims to bridge the credit access gap by using alternative data—such as mobile usage and digital transaction history—to assess borrowers traditionally ignored by standard credit models.
This fundraise not only highlights investor confidence in Africa’s fintech scene but also the growing intersection between artificial intelligence and blockchain to solve deep-rooted financial challenges. With plans to expand into Ghana, Kenya, and South Africa, Kredete is positioning itself as a pioneer in the African decentralized finance (DeFi) movement, broadening access to responsible lending services.
Conclusion: Africa Takes Center Stage in Crypto’s Global Growth
The latest updates from Africa Crypto News Week in Review: Circle Backs African Fund, South Africa Adopts Crypto Tax Laws, Kredete Raises $22M reaffirm that Africa is more than just a participant—it’s becoming a driving force in the global crypto economy. With innovations in legal frameworks, technological finance, and venture capital, the continent is crafting a future where digital assets play a pivotal role in socioeconomic development.
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