Africa and correspondence with FATF crypto requirements

Despite the fact of African continent absence at digital assets regulatory map, the African crypto companies dealing with the exchange and other crypto-related matters on the territory of Africa are doing their best to bring their businesses with the correspondence to know -your – customer (KYS) rules, implemented by Financial Action Task Force (FATF). 

The actions of compliance making are mostly related to the observance of the requirements which are necessary for getting the crypto activities licenses from other counties or getting the permission to create new crypto legislation framework on the territory of Africa

According to the mentions of FATF about the regions with non-developed or non-existent AML and CTF policy implementations, such regions are subject to the regulations acting at the regions with stronger AML/CTF laws, applicable to crypto services providers.

Though, the implementation of any rules is almost impossible if local authorities have not implemented revised FATF standards and do not monitor their observance in the manner enabling international cooperation in the sphere of anti-money laundering and terrorism financing countering.

One way or another, newly appearing crypto gamers in Africa and other parts of poorly crypto regulated regions do all their best to be compliant with AML requirements aiming to observe the demand of Travel rule, which supposes the identification of the person in case if such person conducts the transaction exceeding 1000USD.

Registration shopping tours

As the former citizen of Kenya and the director of crypto identification startup Notabene – Pelle Braendgaard mentions, the companies deal with KYS and apply available blockchain options for AML. In other words, people go to other countries with an improved level of crypto regulation for purchasing required licenses, which make their crypto activity more transparent.

This is the way the BitPesa company, established in Kenya in 2013, did. This crypto payment and exchange platform, which has changed its title to AZA recently, first got the license from U.K.’s Financial Conduct Authority (FCA) in 2015. Next, it purchased money transfer organization TransferZero in 2018, by such getting the license from the Spanish Central bank.

According to the statement of Stephany Zoo, AZA’s head of marketing, after launching the AZA office in Nigeria, this company has helped Nigerian Central Bank to deal with crypto legislation issues by participating in a government DLT task force. Such participation became possible, as this company ANL and KYS standards are made in compliance with the UK and European standards, which are new and practically unfamiliar at the African continent.

But picking the remittance licenses is one side, another one is the creation of the unique regulatory base like the CEO of Cryptobaraza Michael Kimani is trying to do with the Blockchain Association of Kenya.

Kimani considers South African crypto exchange Luno as an association adept and convinced that the members prefer their development way instead of waiting for the state crypto regulations to appear.

Such a situation drives him to expect this project approval from FATF and the International Monetary Fund (IMF).

Kimani convinced that only the Blockchain Association of Kenya is capable to make proper regulatory base fitting the specific conditions of the African crypto market.

His words sound quite convincing, so we continue to  monitor the issue of crypto regulation aspects in Africa and  update  you with new facts as soon as we know them.

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