This week, we shift our attention to CryptoAfrica, examining the latest updates regarding Binance in Nigeria, the growth of Bitcoin mining in Ethiopia, and the restructuring of cryptocurrency taxation in Kenya and South Africa.
Across the continent, specifically Nigeria, South Africa, Ethiopia, and Kenya, cryptocurrencies are steadily integrating into everyday life. Nigeria has successfully released Tigran Gambariyan while Ethiopia strengthens its position in the crypto mining landscape. Meanwhile, Kenyan tax authorities are stepping up their efforts to enforce tax obligations on cryptocurrency users.
Nigeria Crypto Updates: Binance Executive Released, Crypto Use on the Rise
In Nigeria, a shift seems to be occurring in response to Binance’s previous difficulties.
Following a significant exit from the Nigerian market back in April, Binance is now considering re-establishing its operations within the continent’s largest economy.
Recently, the country’s anti-corruption body dropped the charges against Tigran Gambariyan, a Binance executive embroiled in legal troubles. Gambariyan, a U.S. national, had been detained earlier this year on allegations of money laundering. He has since been released to seek medical treatment outside of Nigeria.
This marks a noteworthy change within Nigeria, which is establishing regulations for crypto entities to ensure tax compliance while operating legally. This development aligns with Nigeria’s position as a leading nation in cryptocurrency adoption, holding the second spot globally as per reports from Chainalysis. Currently, Nigeria is ahead of Ethiopia, Kenya, and South Africa, all of which are positioned among the top 30 nations for adoption levels. Nevertheless, overall crypto activity in the sub-Saharan region remains modest, making up only 2.7% of the worldwide trading volume.
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Kenya Crypto Updates: Tax Authorities Targeting Crypto Users and Potential Collaboration with South Africa
The Kenya Revenue Authority (KRA) is in the process of exploring technical solutions to monitor and tax cryptocurrency transactions across exchanges in real-time, as part of efforts to widen the nation’s tax revenue.
Last year, Kenya implemented a 3% tax on gains from cryptocurrencies, which also includes earnings from NFTs.
While some exchanges comply with these regulations, the KRA is working on establishing clear guidelines for tax payment and filing procedures, along with stipulated penalties for non-compliance.
The KRA’s focus comes on the heels of South Africa’s tax authority, SARS, intensifying its scrutiny of cryptocurrency holders and updating its tracking mechanisms.
In South Africa, individuals must report all income from cryptocurrencies as part of their taxable income. Despite the existence of approximately 5.8 million crypto holders in the nation, only a small fraction submits tax returns.
Should Kenya and South Africa collaborate on enforcement strategies, it is likely to bolster tax revenue for both countries.
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Ethiopian Crypto Landscape: BitFuFu Expands Mining Operations Amid Declining Interest in Hamster Combat Game
BitFuFu, a company dedicated to Bitcoin mining, is listed on the Ethiopian NASDAQ and is poised for growth. The firm has plans to take over a major 80 MW cryptocurrency mining operation in Ethiopia.
This initiative aims to cut operating expenses by leveraging Ethiopia’s plentiful renewable energy, which costs around $0.04 per kWh on average.
With this acquisition, BitFuFu aims to decrease the costs associated with BTC mining, while also expanding its output by gaining direct control over its operations.
While blockchain gaming has shown potential, enthusiasm for titles like Hamster Kombat has significantly declined. Many young Ethiopians feel disillusioned after initial success led to disappointment.
Reports suggest that the fascination with Hamster Kombat has faded, with many feeling misled by social media promotions. Unfortunately, most players have found their earnings to be minimal.
Pan-African Crypto Updates: Malware Threatens Crypto Startups
The Grandoreiro Trojan malware remains a significant risk to various financial services across the continent. Research by Kaspersky Global indicates that this malware threatens crypto platforms in countries including Kenya, Angola, Ethiopia, Ghana, Ivory Coast, Nigeria, and South Africa.
While several perpetrators were apprehended in Brazil earlier this year, the operation has since been restructured and continues to evolve in a more fragmented manner.
As cryptocurrency theft and financial fraud become prevalent, it’s crucial for African crypto platforms to prioritize the security of user funds.
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