The Central African Republic, C.A.R, has legalised the use of crypto in its financial markets, a development that sparked reactions across the continent.
On April 21, Minister of Digital Economy, Post and Telecommunications Justin Gourna Zacko submitted the cryptocurrency bill, which was unanimously passed by parliamentarians in the parliament despite opposition protests.
The crypto law intends to create a conducive climate for the crypto sector’s inclusive expansion in the region. Minister Zacko also mentioned the increasing difficulty in transporting money out of the African country, and expressed his belief that crypto acceptance will aid in resolving the problem.
Traders and businesses will be able to make crypto payments under the new law, which will also allow for tax payments in crypto via recognized entities.
The new crypto law also includes penalties for those who break the rules. According to one source, offenders might face up to 20 years in prison and fines ranging from 100 million to 1,000 million Financial Community of Africa (CFA) francs.
The CFA franc, which is pegged to the euro and printed in France, is used by 14 countries, and its monetary policy is influenced by Western powers. The official peg was fixed at 1 euro to 655.96 CFA francs, however the currency has been losing value for a long period. As a result, Bitcoin and other cryptocurrencies are gaining traction in countries grappling with national economic crises.
Meanwhile, in Nigeria, the Central Bank has sanctioned commercial banks for non-compliance with the restrictions on cryptocurrencies transactions.
Recall, in February 2021, the Central Bank placed a ban on individual and business users of cryptocurrencies from trading through Nigerian banks. Three major banks in Nigeria have been fined for failing to comply with the directive.
Access Bank was fined 500 million naira for failing to close accounts used to fund and trade cryptocurrencies while UBA was fined 100 million naira for a transaction carried out through its operations.
