The Middle East and North Africa (MENA) region has been identified as the fastest-growing crypto market from 2021 to 2022. This follows a release of a report on the state of web 3 in Africa.
As a result of the growth, Web3.0 technologies are leading the digital revolution among users, regulators and crypto investors.
Notably, Blockchain technology funding in Africa grew by 1,668% in 2022. This is in comparison to the preceding year. However, despite Africa receiving a total of USD 91 million, this was just 0.5% of the global blockchain funding.
Nigeria is highly-ranked in crypto adoption. The country is in the top 10 worldwide. According to the report, Web 3.0 is enhancing financial inclusion and nurturing innovation in the digital currency sector. This is the case across West Africa.
In Southern Africa, adoption has been key in revolutionizing industries via secure and transparent data management.
Kenya leads in Web 3 adoption across the East African region. Speedy growth of the sector and implementation of Blockchain has spurred economic development.
Ahmed M Amer, CEO of EMURGO Africa, in a statement, emphasized, “Web3.0 technologies are already redefining the African digital landscape, offering innovative solutions to long-standing challenges and empowering individuals and communities across the continent. This report presents an in-depth exploration of the potential of these technologies to drive positive change, while highlighting the importance of fostering a collaborative environment between stakeholders, policymakers, and regulators to unlock the full potential of Web3.0.”
Web 3 Regulatory Balance
Across the globe there is existing push to regulate crypto. Of the 35 nations surveyed for the report, 40% have put in place regulatory frameworks. Additionally, 34% are in the process of formulating regulations.
However, 9% of the countries survyed are enforcing outright prohibitions on cryptocurrencies.
The report indicates that 20% of Sub-Saharan African countries are currently outlawing crypto-assets. Furthermore, the progress of crypto is inhibited by existing data protection laws in countries like Kenya, Nigeria, Egypt, and South Africa.
Hence, the report finds there is a need to have regulatory balance. Balance will help enhance growth in the sector while safeguarding individual privacy and protection.
Here in Kenya we have the new Finance bill. The Bill has proposed the introduction of a digital assets tax. This is a 3% levy on the transfer charges applied during the exchange of the assets which cover cryptocurrencies, digital currencies, and non-fungible tokens (NFTs).
The report titled “State of Web3.0 in Africa” was released this evening by EMURGO Africa in partnership with PwC.
It covers the emergent influence of blockchain and Web3.0 technologies within the Middle East and North Africa (MENA) region.