The International Monetary Fund (IMF) recently highlighted the growing demand for better cryptocurrency regulatory efforts in Africa as the continent witnessed a massive surge in adoption amongst retail and institutional investors.
The financial agency cited the recent FTX collapse to highlight the risks of exposing investors to a largely unregulated cryptocurrency market. Since there appears to be a global dearth of proper regulation, the African cryptocurrency scene appears to be lacking the most, the IMF noted in a blog post published Tuesday.
Despite the surge in adoption, most African countries have not wholly welcomed the cryptocurrency industry, leading to a lack of oversight and subsequent unregulated exposure for investors. The IMF mentioned that the FTX collapse, which triggered a market-wide bloodbath for several crypto assets, has further underlined the need for better supervision to protect investors.
(by Albert Brown)