Originally reported by Technext
As Sub-Saharan Africa cements its place as the world’s fastest-growing region for stablecoin adoption, a new report from Yellow Card is urging governments across the continent to back grassroots crypto innovation with clear and inclusive regulation.
In an exclusive interview with Technext, Lasbery Oludimu, Vice President of Global Operations and Managing Director for Yellow Card Nigeria, described Africa as both a “laboratory of innovation” and a proving ground for policy. The insights come from Yellow Card’s 2025 State of Digital Assets Regulation in Africa report — the most comprehensive overview of cryptocurrency laws, bans, and licensing frameworks currently in place across 30+ African countries.
“Concerns around misuse are valid,” Oludimu told Technext. “But the answer is regulation, not restriction. Without clear guidelines, bad actors thrive, and good use cases suffer.”
📈 Stablecoins Power Africa’s Everyday Economy
According to data cited in the interview, Sub-Saharan Africa is now the global leader in stablecoin usage, with over 54 million users relying on crypto-backed digital dollars for remittances, e-commerce, and protection against currency devaluation.
From Nigeria’s massive USDT trading volumes to Ethiopia’s rise in stablecoin-powered low-value transfers, digital assets have moved from hype to utility — helping individuals and SMEs navigate failing monetary systems and fragmented payment infrastructure.
Oludimu notes that Yellow Card’s own partnership with Visa — which enables stablecoin-powered cross-border payments — has scaled because “regulators already understand the use case”.
🛡️ Regulation: Africa’s Next Frontier
Despite booming adoption, many African governments remain cautious. The report categorizes countries into four types:
- Established regulatory regimes: Nigeria, Botswana, South Africa
- Frameworks under development: Kenya, Rwanda
- Pre-regulatory stage: Malawi, others
- Outright bans: Egypt, Algeria, Morocco
Botswana is held up as a model of clarity, having skipped the sandbox phase and moved straight to a licensing regime under its Virtual Assets Act. Meanwhile, countries like Zambia and Nigeria opted for a sandbox-first approach, allowing fintechs like Yellow Card to operate under strict supervision before formal frameworks are enacted.
“There’s no one-size-fits-all,” said Oludimu. “Sandboxes allow for safe testing. But Botswana’s approach shows that you can start bold and refine over time.”
🤝 A Localised Model, A Continental Mission
Yellow Card, which now operates in over 20 African countries, has anchored its regulatory advocacy in localisation. The company registers as a local entity, hires locally, pays taxes, and shares operational data with regulators — a sharp contrast to international exchanges that often operate without on-ground accountability.
“We’re not fly-in-fly-out,” Oludimu emphasized. “We embed ourselves in each market.”
🌍 What’s Next for Africa’s Crypto Ecosystem?
The report calls for a stronger regulatory backbone to support sustainable growth:
- Finalise pending national frameworks to boost investor confidence
- Strengthen AML/KYC enforcement
- Involve local stakeholders in policy design
- Build robust data protection and consumer safeguards
Oludimu also touched on the role of Central Bank Digital Currencies (CBDCs), noting that while CBDCs are designed for internal use, stablecoins are uniquely suited for pan-African trade — and both can coexist in a balanced regulatory environment.
🧭 The Road Ahead
As Yellow Card continues to partner with regulators and private sector actors across Africa, its 2025 report offers a clear message: Africa is no longer testing crypto — it’s building with it. And without supportive regulation, this momentum risks stalling.
“We believe this report benefits everyone — regulators, businesses, law enforcement, and consumers,” Oludimu told Technext. “It’s not AI-generated. It’s built from real research, real data, and real conversations with stakeholders across the continent.”
