A fragmented regulatory landscape is threatening to undermine Africa’s rising momentum in blockchain innovation. The Africa Blockchain Report 2025, released by CV VC in collaboration with Absa Bank, reveals that uneven regulation is creating a serious bottleneck for growth, funding, and cross-border scalability.
Only seven African countries have implemented clear and enforceable digital asset regulations. Roughly 35 nations remain in regulatory limbo, operating without formal legal frameworks for digital assets. Meanwhile, seven impose informal restrictions, and five enforce outright bans, effectively cutting off access to Web3 innovation.
A two-speed blockchain economy is emerging
This regulatory fragmentation is fuelling a two-speed blockchain economy. Forward-moving markets like Nigeria, Kenya, and South Africa are emerging as innovation hubs, drawing developer talent, institutional interest, and an increasing share of venture capital.
Nigeria alone accounted for 33% of Africa’s blockchain deal activity in 2024, driven in part by clearer policy direction and the lifting of a crypto ban.
In contrast, countries with unclear or restrictive regulations are losing ground, struggling to retain talent and attract meaningful investment. According to the report, this imbalance could widen the gap between blockchain-ready economies and those stuck on the periphery.
“Regulatory clarity is not just about legal compliance, it’s about creating the confidence to build.”
— Africa Blockchain Report 2025
East Africa illustrates the regulatory divide
East Africa offers a mixed picture. Kenya has introduced a 3% digital asset tax but has yet to establish a comprehensive crypto law. Uganda recognises virtual asset service providers, but licensing clarity remains absent. Tanzania continues to take a cautious stance, while Ethiopia offers no formal position, despite growing grassroots interest.
Without coordinated regulation, efforts to scale decentralised finance (DeFi), Web3 entrepreneurship, and cross-border blockchain platforms risk being stifled.
Industry leaders and policymakers are urging pan-African institutions, including the African Union, ECOWAS, and SADC, to spearhead regulatory harmonisation. A unified approach could enable smoother integration of blockchain platforms, build investor confidence, and support Africa’s digital economy at scale.
“Africa cannot afford a fragmented future in blockchain. We need alignment, not isolation.”
— Rob Downes, Head of Digital Assets, Absa CIB
Africa’s blockchain potential is enormous, but so too is the cost of inaction. The report urges continental and regional collaboration to bridge the policy gap before it hardens into structural disadvantage.
Without harmonised frameworks, Africa risks missing out on the economic leap that blockchain could unlock across critical sectors like finance, trade, and agriculture. A pan-African approach could enable borderless DeFi solutions, fuel cross-continental startup expansion, and attract the kind of long-term capital needed to anchor Web3 innovation on the continent.
Read also: https://blockchaindesk.co/nigeria-hosts-africas-first-stablecoin-summit-lagos/
