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Africa's crypto market grows, with $8 billion in transactions, as scams and money laundering surge, with $3.6 billion stolen in one hack, and experts warn of
Africa's crypto market, though still relatively small, has seen a significant increase in scams and money laundering, with the continent receiving $8 billion in crypto transactions between July 2019 and June 2020 [1]. The legitimate use of cryptos can boost commerce, particularly among individuals, small businesses, and entrepreneurs, but the threat of crypto laundering cannot be ignored, with the world's biggest crypto scam in 2020 perpetrated in South Africa, swindling hundreds of thousands of victims out of $588 million in Bitcoin [1].
| At a glance | |
|---|---|
| Total transactions | $8 billion |
| Largest scam | $3.6 billion |
| Countries with highest use | Kenya, South Africa, Nigeria, Ghana, Morocco, and Egypt |
| Crypto currencies on the global market | 4,921 |
The global reach and speed of transacting make crypto currencies appealing to criminal syndicates, with the two main types of crypto crime reported in Africa being ransomware attacks and crypto scams [1]. Crypto currencies are decentralised and unregulated, with no central banking authority managing their value, which derives from what users are willing to pay per unit [1]. The number of crypto currencies on the global market has surged to around 4,921, with Bitcoin currently having the highest value, trading at around $60,000 apiece [1]. According to Richard Chelin, a Senior Researcher with the Institute for Security Studies (ISS), Africa has the smallest crypto currency economy globally, but the market is growing steadily [3].
Crypto laundering is a significant concern, with cyber criminals preferring to use cryptos over flat currencies to launder their illegally obtained funds, as it is much cheaper, costing about 15% of the proceeds compared to around 50% using traditional money laundering methods [1]. The latest Crypto Crime Report released by Chainalysis identified Russia, China, the United States, the United Kingdom, France, Ukraine, South Korea, Vietnam, Turkey, and South Africa as receiving the highest volume of crypto currency from illicit addresses [1]. South Africa was the only African country mentioned in the Chainalysis report [1].
The expansion of crypto currency markets in Africa, coupled with a growing digital skills pool and transnational organised criminal networks, presents a significant threat, and the problem should be tackled now to prevent Africa from becoming the next playground for crypto criminals [1]. As the continent's crypto market continues to grow, it is essential to ensure that crypto service providers assess and mitigate their money laundering risks and implement global and national anti-money laundering regulations [1].
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 3 outlets · Aug 5, 2026 · How we report
It describes a historical accusation that some German Lutherans secretly adhered to Calvinist Eucharistic doctrine.
Scammers build personal relationships with victims, persuade them to invest in cryptocurrency through a fake exchange, and then steal the funds.
The victim lost approximately $306,000, including the initial investment and additional fees claimed by the fraudsters.
Mentioning well‑known exchanges adds credibility, encouraging victims to trust the transaction process.