Uganda
Current Economic Situation in Uganda Uganda is a landlocked country situated in East Africa. It is a strategic country as it shares borders with countries like Kenya, South Sudan, the Democratic Republic of the Congo, Rwanda, and Tanzania. Uganda is home to about 50 million people, with 1.3 million of the population living in its capital city, Kampala, which is also the country’s financial and economic center. Source: africanmeccasafaris.com The economy of Uganda has been expanding over the years—from 4.6% in 2023 to 6.0% in 2024. This growth is projected to hit 7.0% by 2025. However, the Bank of Uganda’s tight monetary policy has set inflation to 5%. Alt text: An image showing five charts: the real GDP growth, real GDP per capita growth, CPI inflation, budget balance, and the current account of Uganda. Source: afdb.org The World Bank attributes this accelerating growth to the agriculture and services sector and a further 10.8% increase by 2026 when oil production starts. However, a slide to 6% is expected when oil production plateaus. The recovery of the tourism sector is also expected to add to this growth. With proceeds from oil revenues, poverty could be reduced by 40.1% in 2026 from 41.3% in 2024. However, the pace of this reduction also depends on how well households can manage and recover from financial shocks. Crypto Law in Uganda The Ugandan government does not regulate cryptocurrencies, and they are not recognized as legal tender. There are no regulations governing crypto and no licensed organization in the country that sells or facilitates its trade. However, citizens who invest or trade these digital assets do so at their own risk. Source: Tekedia.com There have been calls to regulate these digital assets from many stakeholders, especially Uganda’s Financial Intelligence Authority (FIA) and the Collaboration on International ICT Policy for East and Southern Africa (CIPESA). In 2021, FIA asked the Ministry of Finance to come up with a legal framework for these digital assets due to money laundering, terrorism financing, and scam concerns. Sydney Asubo, the former executive director of the FIA, made this call during a meeting with stakeholders in Kampala. He complained that the regulation is needed due to the failure of the industry participants to meet the FIA’s licensing requirements. For more context, the FIA, in a bid to curtail crime in the crypto space, amended Uganda’s Anti-Money Laundering (AML) laws to include crypto exchanges and other virtual asset providers (VASPs). However, Asubo revealed that many VASPs continue to operate illegally and fail to identify with FIA. He further complained that: This is why an exhaustive legal framework is needed to regulate the activities of VASPs. CIPESA, through a policy brief that was released in October 2023, outlined the potential risks and threats that civil society organizations (CSOs), individuals, companies, financial institutions, media, and academics, including students, could potentially face if operations of cryptocurrencies are not checked. This policy brief analyzed the legislative complexities of cryptocurrencies under the Capital Market Authority, Cap. 84, AML Act, the Foreign Exchange Act of 2004, the Electronic Transactions Act (No. 8 of 2011), the Electronic Signatures Act (No. 7 of 2011), the Computer Misuse Act (No. 2 of 2011), and the National Payment Systems Act (15 of 2020). Under the reference of the AML, the CIPESA cited the amendment made earlier to include VASPs among the list of accountable persons subject to supervision and monitoring by FIA: The CIPESA also discussed case studies, impact, guiding principles, and recommendations for effective cryptocurrency regulation. Current State of Crypto Adoption in Uganda Statista reports that the revenue generated by the cryptocurrency market in Uganda is projected to reach US $4.7 million by 2024, with a slight decline to US $4.6 million by 2025. Source: Statista.com An average Ugandan contributes around US $23 to the crypto market in 2024, with a user penetration rate of 0.41%. Source: Statista.com The number of users of cryptocurrencies is projected to hit 206,100 by 2025 when the user penetration rate is expected to hit 0.40%. Factors Driving Adoption This growth is attributed to its tech-savvy population, with an increasing number of startups and local exchanges emerging. Although not the majority, the increasing growth of the tech-savvy population of Uganda is driven by high mobile penetration, increasing internet access, and a rising inclination towards digital technologies, especially through mobile devices. Internet users have increased by 10.3% (1.2 million of the population) between January 2023 and January 2024. In the words of Dr. Amina Zawedde, the Permanent Secretary, Ministry of Information Communication and Technology (ICT): This growth is fueled by initiatives such as the National ICT Policy and the Digital Transformation Roadmap (2023-2028) by the Ugandan government. This roadmap prioritizes digital literacy, high-speed internet access, and cybersecurity, which are the needed elements for a strong digital economy, especially in the exploration of the ‘crypto verse.’ Crypto-based startups and local exchanges are on the rise in Uganda. These startups offer investments and trading services that are tailored to suit the Ugandan people. Cryptocurrency Usage in Various Sectors Aside from the use of cryptocurrencies for local and international payments offered by these startups and international players, blockchain technology is being employed to tackle challenges in other areas such as food and agriculture, and to ensure financial inclusion. In agriculture, a Ugandan company called Carico Café Connoisseur is using blockchain technology to trace coffee from farms to stores. Source: furtherafrica.com In the words of the CEO, Mwambu Wanendeya: The blockchain here works by ensuring a shared record of data held by a network of individual computers rather than a single party, making it hard to tamper with, and providing a secure way to track goods along the supply chain. Similarly, in 2017, US-based companies Bext360 and Coda Coffee developed a machine that graded and weighted coffee beans deposited to Great Lakes (a Coda Coffee export partner based in Uganda) by individual farmers in East Uganda. Source: goexplorer.org This invention utilizes technologies such as machine vision, AI, IoT, and of course, blockchain.
Sierra Leone
Current Economic Situation in Sierra Leone Sierra Leone is situated in West Africa, sharing borders with Liberia and Guinea. The Republic of Sierra Leone, as it is officially called, is divided into three provinces (northern, southern, and eastern) and a western province that includes the nation’s capital, Freetown. Source: stock.adobe.com The country’s economy is considered ‘repressed’ according to the 2024 Index of Economic Freedom due to its poor rating. It ranks 41st out of 47 countries in the Sub-Saharan African region and the 163rd in the world. Its economic freedom score has decreased by 5.6 points from last year and currently stands at 44.6 in 2024. The economy of Sierra Leone is highly driven by the industrial sector (mining in particular), while agriculture and the service sectors are in smaller proportions. This is due to the government’s negligence of these other sectors because of the revenue generated by the mining sector. Sierra Leone is well known for its large diamond deposits as well as rutile—a titanium ore used as paint pigment and welding rod coatings. However, there has been some notable growth in these other sectors too. Over the past five years, Sierra Leone has recorded an average growth rate of 2.7 percent, according to the ECOWAS Bank for Investment and Development (EBID). Source: BIDC This growth is projected to reach 3.6 percent in 2024, which is supported by investments in mining operations and a reduction in production costs. The average inflation is also projected to reach 23.1 percent, the fiscal balance to narrow down to negative 2.9 percent, and a debt-to-GDP ratio of 84.9 percent in 2024. The African Development Bank (AFDB) in its African Economic Outlook (AEO) projects that this growth will continue even till 2025, as it expects a 5.2% increment. Inflation, however, is expected to decline. Source: afdb.org Crypto Law in Sierra Leone There are no regulations for cryptocurrencies in Sierra Leone. The Bank of Sierra Leone (BSL) does not issue licenses to crypto companies. Source: sharda.ac.in In 2019, the Bank of Sierra Leone (BSL) banned two crypto companies from operating because they were not issued licenses. An excerpt from a press release dated 10th April 2019 by BSL pertaining to one of the banned companies, “My Residual Income Global -SL Limited”, popularly known as “My Coin,” reads: In 2021, the Manager of “My Coin”, Mr. Patrick Jobeth was arrested, and a legion of his customers stormed the Bo Police station (where he was held) to lay their grievances. BSL had to issue another press statement reiterating its former stance. It went on to state that: The apex bank tagged the activities of ‘My Coin’ illegal according to Section 44(1) of the Bank of Sierra Leone Act 2019, Section 7(6) of the Banking Act 2019, and Section 3(1) of the Other Financial Services Act 2001. Furthermore, the public was reminded to consult the BSL for names of financial institutions that are licensed to engage in any financial transaction in the country. Current State of Crypto Adoption in Sierra Leone The crypto revenue generated in Sierra Leone for 2024 is US $142,200, according to Statista. This value is projected to have a negative annual growth rate of 3.38% in 2025, resulting in US $137,400. Source: Statista The average Sierra Leonean contributes about US $2.1 annually to the crypto market as of 2024, with a user penetration rate of 0.77%. This rate is expected to increase to 0.76% by 2025, with the cryptocurrency market projected to reach US $69,250. Factors Driving Adoption Despite the unregulated nature of cryptocurrencies in Sierra Leone, the data proves there is a growing interest in this emerging technology by individuals and businesses. This interest spawns across various decentralized finance (DeFi) platforms, and the potential crypto has for financial liberation, a hedge against inflation and political instability. Source: Pikbest.com DeFi Applications Most especially, the advancements in blockchain technology have contributed to this growth. In 2018, the government of Sierra Leone partnered with Kiva and the United Nations agencies to implement a national digital identification system using distributed ledger technology (DLT). Kiva, a San Francisco-based company, created what it called the Kiva Protocol based on blockchain technology, which can be used to create online identities for Sierra Leoneans. This system is meant to help those who find it difficult to secure loans by providing their credit history. It is worthy of note that Sierra Leone is the first country to implement the online credit system designed by Kiva, despite its presence in a vast number of countries. BSL declared that one-third of the Sierra Leonean population lies outside the formal banking sector. This leaves the majority of the population in the hands of community banks and money lenders. These alternatives do not share customers’ credit history and tend to charge extortionate interest rates. This brought about the need for a decentralized system, which the Kiva Protocol provides. All you need is the mobile app, connect it with your thumbprint (already collected and stored during voters’ card registration), get your digital wallet, and voila! It automatically starts storing your credit history, which cannot be tampered with. In the words of the President of Sierra Leone, Julius Maada Bio, during the launch of the online credit system: Young and Unemployed Population Sierra Leone has a young population with 74.5 percent under 35 years. This demographic is faced with limited economic opportunities. Unemployment tops the list, with about 70 percent of the youths unemployed. This is one of the highest in the West African region. This youthful population is exploring cryptocurrencies to reap the profits from investments and trading opportunities, in a quest to change the narrative. Migration and Cross-border Transactions A large number of these young populations are also migrating to urban areas in search of better livelihood and opportunities. This exposes them to digital literacy and of course, cryptocurrencies. In addition to this, the increasing use of cryptocurrencies for cross-border transactions due to their low cost is also contributing to market growth. However, the market
Iran
Current Economic Situation in Iran The Islamic Republic of Iran is the sixth largest country in Asia, with a Muslim-majority population. Persia, as it is also called, is a multi-ethnic country with a population of over 90 million people. The country comprises five regions with thirty-one provinces. The nation’s capital, Tehran is the largest city and financial center of Iran. The economy of Iran is driven by hydrocarbon, agricultural, and service sectors, as well as manufacturing and financial services. It is quite notable that Iran is the second country in the world with the most natural gas reserves, and fourth with proven crude oil reserves. Although the government is working towards diversifying the economy, the country is still well dependent on its oil revenue, which makes it volatile, according to the World Bank. However, growth in the non-oil sector has been impressive, as it has led to a reduction in the unemployment rate. The government’s tighter monetary policies have aided a deceleration in inflation. The Iranian economy is subject to significant risks, ranging from international sanctions, possible expansion of the conflict in the Middle East, global oil demand weakening, and the impact of climate change. For the international sanctions, Iran is using cryptocurrencies, most especially Bitcoin mining, to alleviate its isolation in global trade by generating revenue to purchase imports that would otherwise be restricted due to financial limitations. However, another major problem lingers: the oil GDP growth is slowing down in 2024/2025 (the Iranian calendar year ending March 20) due to low demand. Source: World Bank In 2023/2024, the oil and service sectors accelerated the GDP growth of Iran by 5 percent. The Oil GDP surged by 14.7 percent, while the non-oil sectors (service-led) by 3.6 percent. This growth has continued upward in 2024/2025 with a positive impact on the employment increase. Unemployment has reduced to 7.7 percent. However more jobs are needed to boost the labor force participation. Crypto Law in Iran Cryptocurrencies are legal in Iran, but there are some restrictions. Alt text: An Iranian flag above a gavel with an inscription “Law” Source: Contractbar.com Here are some highlights of the legal frameworks in Iran over the years: In late April 2018, trading and possession of crypto was banned in Iran. This was due to money laundering and terrorism financing concerns. This ban affected all financial institutions, such as banks, credit institutions, and currency exchanges. They were all prohibited from promoting it in any way. This conclusion was reached after the Central Bank of Iran (CBI) 30th meeting of the High Council of Anti-Money Laundering held on 30th December, 2017. The CBI issued this statement during the announcement of the ban: In 2019, effects of international sanctions become worse on the Iranian economy and brought about the need for a new regulation, which allowed the possession and mining of cryptocurrencies but with exceptions for using digital currencies as payment instruments inside Iran. This new regulation recognizes crypto mining as a legal economic sector and made Iran the first country to use cryptocurrency as reserves to pay for imports and exports. It also authorizes initial coin offerings (ICOs), tokens, cryptocurrency wallets, cryptocurrency exchange bureaus and mining the process of generating cryptocurrencies through employing computing power, Aljazeera reported. Furthermore, the CBI, in a bid to strengthen the rial, barred Iranians from holding large amounts of cryptocurrencies, in the same way they are prohibited from holding more than 10,000 euros. This part of the regulation was the most controversial amongst Iranians. In 2020, the CBI implemented a new requirement for all crypto miners to sell their cryptocurrencies directly to CBI, which gets to use them to fund imports and exports. To incentivize Iranians even more, the government provided cheaper power to over a thousand locally-based licensed miners. In the latest mining regulations of cryptocurrencies in Iran, approved in November 2022, mining equipment is permitted only by obtaining a license from the Ministry of Industry, Mining and Trade, and through legal commercial and customer procedures. Current State of Crypto Adoption in Iran Iranians are no strangers to cryptocurrencies. The revenue generated annually attests to this. However, the government’s continuous re-adjustments to the regulations keep affecting its adoption. Source: Statista In 2020, the annual crypto revenue generated was USD 183.9 million, but after the government provided a cheaper power supply to licensed crypto miners, the number skyrocketed to USD 912.4 million in 2021. By 2022, when the mining regulations were enforced, amongst other policies, the annual revenue dropped to USD 537.1 million. This shows the correlation of regulations on cryptocurrencies. Source: Statista The revenue is recovering as it hits USD 807.1 million in 2024, with a slight projected decline to USD 782.4 million in 2025. An average Iranian contributes USD 0.2 thousand to the crypto market as of 2024. This figure is projected to be maintained in 2025. Factors Driving Adoption The need to maneuver the effects of Western sanctions on the Iranian economy, alongside government incentives, good internet is driving the adoption of cryptocurrencies. Western Sanctions Cryptocurrencies provide an alternative to facilitate import and export in Iran due to the sanctions from the United States of America and other international communities. As earlier built upon, these sanctions created the need for other sources of payments which cryptocurrencies provided. Government Incentives Incentives such as the cheaper electricity supply to licensed crypto miners have made Iran an accommodative space for cryptocurrencies to thrive. A study conducted in 2021 shows that 4.5% of the world’s Bitcoin mining happens in Iran. This goes to show how big the impact of providing cheaper electricity has had in driving crypto adoption in Iran and how Iranians are embracing this technology. Good Internet Connectivity Iran has a good internet penetration rate of about 86.7% as of 2024, with 16.94 million households having internet access. This data reflects why Bitcoin mining is rampant, as it is an important requirement. The 4G network coverage is estimated at about 4.33%, while 3G is about 88.63%, which is satisfactory for Bitcoin
Tuvalu
Current Economic Situation in Tuvalu Source: freepik.com Tuvalu is a collection of nine coral islands that form a country, which lies midway between Australia and Hawaii in the west-central Pacific Ocean. ‘Coral’ are organic materials from animal and plant remains. These together with volcanic rock, and lowland are the major composition of this island country. Due to this, the soil is porous, making agriculture limited. The Tuvaluan economy relies on fishing, foreign aid, tourism, remittances from citizens working abroad (especially in Australia), and small-scale farming. It is also notable that Tuvalu owns the “.tv” top-level domain extension and, as such, is a key revenue generator. The largest of its archipelagos (group of islands) is called Funafuti Atoll, which is where the capital is located. Tuvalu’s population is the second-smallest country in Oceania after Nauru and the fourth-smallest in the world. It is home to about 11,000 people. The capital accounts for 60% of this population. The Asian Development Outlook shows a continuous decline in the GDP annual growth rate of the Tuvaluan economy since 2023. Source: adb.org In 2023, the GDP growth rate stood at 3.9%, with a projection of a reduction to 3.5% in 2024. The decline is forecasted to continue even more to 2.4% by 2025. Despite this decline, Tuvalu is still among the best economies in the region in terms of GDP growth rate, aside only Cook Islands, Samoa, Palau, and Kiribati, whose economies range between 5.8% and 15.0%. Source: adb.org In terms of inflation, Tuvalu currently holds the smallest record of 2.5% in the region, leading countries such as Fiji and the Marshall Islands, whose inflation rates go as high as 5.9% and 5.8%, respectively. Source: adb.org Over the years, Tuvalu has experienced the adverse effects of climate change. One major effect is that the highest point in this archipelago is 4.6 meters (15 feet) high due to rising sea levels and temperatures. There are projections that in 50-100 years, Tuvalu would be no more, as it would have been ‘swallowed’ by the ocean. In testament to this, the government has this to say: Could crypto save the Tuvaluan people while improving its economy? Well, with blockchain technology, which is the foundation of the cryptocurrencies, the Tuvalu people could leverage a paperless economy, carbon credit tracking, decentralized fundraising, climate data management, a digital land registry, and other amazing features of this emerging technology, which helps to slow down the effects of climate change. We will explore these further. Crypto Law in Tuvalu There are no specific regulations governing crypto in Tuvalu. Cryptocurrencies are legal to hold, mine, or trade. Source: bamandgadsolicitors.com Current State of Crypto Adoption in Tuvalu There is no publicly available data on the current state of cryptocurrencies in Tuvalu, but the digital footprint of blockchain technology is clearly evident. Alt text: An image indicating no public records of cryptocurrency ownership in Tuvalu Source: triple-a.io Tuvalu is working towards having the world’s first blockchain citizens by creating a national digital ledger. This public ledger is expected to contain the identities, citizenship, and financial data of all its citizens. The journey towards this began in December 2020, when the government announced a massive digital migration project, integrating its governance and financial systems with the BSV public ledger, aiming to become the world’s first paperless society. Tuvalu is collaborating with blockchain technology company nChain, blockchain consultancy company Elas Digital, and a community-tech consultancy, Faiā on this project. An amazing fact about this project is that it will be built on the BSV blockchain, which provides a reliable and efficient foundation due to its unbounded scaling, low transaction fees, and locked-down protocol. Another amazing fact is that the founder of Faiā, George Siosi Samuels, happens to be of Tuvaluan descent, making it a ‘personal’ project, so to speak. Samuels has written previously about how digital assets can expedite the country’s digital transformation while mitigating the effects of climate change. His works made the government reach out to him to be part of the national digital ledger project. This project does not come cheap, especially for an economy like Tuvalu. The country is funding this project from the proceeds of its ‘.tv’ domain. Factors Driving Adoption Factors driving the adoption of cryptocurrencies and blockchain technology in Tuvalu are climate change, limitations of traditional financial institutions, and the government’s support. Source: borgenproject.org Climate Change This is a major driver of the adoption of blockchain technology in Tuvalu. Its drastic effects on these islands create the necessity to explore climate-friendly solutions, which the blockchain and crypto technology present. The paperless economy, for instance, translates to less cutting of trees, which are part of the solutions to the climate change crises. Although there is no paper money from Tuvalu (as the country uses coins) and adopts the Australian currency as legal tender, the national digital ledger project in-works may eliminate other uses of papers such as credit histories, land registries, national identities, etc. Limitation of Traditional Banks The Asian Development Bank in 2019 reported that there are only two banks in Tuvalu—a national bank and a development bank, with a handful of small, informal moneylenders. The need to beat queues and process quicker transactions is triggering Tuvaluans to explore cryptocurrencies. Moreover, the lower transaction costs are incentives. Government Support Despite no dedicated legal framework governing cryptocurrencies, the Tuvaluan government has been supportive of digital technology, in particular, blockchain technology. Source: cyprus-mail.com In the words of Samuels: Challenges Facing Crypto Adoption in Tuvalu The challenges affecting the adoption of cryptocurrencies and blockchain technology are enormous. Here are some major ones. Regulation Uncertainty The lack of a legal framework governing digital asset transactions creates a gray area that poses doubts in the minds of prospective users of this technology. Internet Limitations There are concerns about the state of the internet in Tuvalu, especially for carrying out the national digital ledger project. Source: kacific.com However, the founder of Faiā, George Siosi Samuels, has this to say about internet distribution in these islands: This
Singapore
Current Economic Situation in Singapore The economy of Singapore is considered the “world’s freest” by the 2024 Index of Economic Freedom. Singapore ranks with an economic freedom score of 83.5. For more context, the Singaporean economy ranks higher than the world and regional averages. In the Asia-Pacific region, it ranks 1st out of 39 countries. Source: Nationalgeographic.com The World Bank Human Capital Index ranks Singapore as the best in the world in human capital development. This, however, has not always been the case. The World Bank had this to say about Singapore: After its independence in 1965, Singapore experienced rapid growth and elevated from a low-income economy to a higher-income one. This growth results from a business-friendly regulatory environment and strong investments in infrastructure, education, healthcare, and public services. The Singaporean Ministry of Trade and Industry in a press release on 13th of August 2024, announced that the country’s GDP growth forecast for the year has shrunk from 1.0 to 3.0 percent to 2.0 to 3.0 percent. The press release reveals that the economy of Singapore has expanded by 2.9 percent in the second quarter, extending 3.0 percent in the first quarter on a year-on-year basis. The wholesale trade, finance and insurance, and information and communication sectors were identified for driving this growth. Singapore has leveraged digital innovation so well that it sits as a global leader in the Asia-Pacific region. The nation brags of about US 625 million dollars in funding for cryptocurrency companies in 2023, across 88 deals. Its robust fiscal system is attracting investors, who also do not have to pay capital gains tax. This incentive is triggering more adoption of cryptocurrencies as well as improving the economy. Source: Statista Crypto Law in Singapore Cryptocurrency is legal in Singapore, and it is regulated under the Payment Service Act (PSA) which was launched in January 2020. The Monetary Authority of Singapore (MAS) is the body responsible for formulating regulations and supervising financial institutions—both traditional and crypto-related. Source: Smartsinga.com MAS introduced the Payment Service Act in a bid to streamline all payment-related services under a single legislation and detailed license and money laundering compliance requirements for cryptocurrency operators. The PSA categorizes all digital currencies as digital payment tokens (DPTs), while MAS recognizes Bitcoin and Ethereum as cryptocurrencies. This made cryptocurrencies legal assets to be treated similarly to other asset classes. The act also mandated that any individual or business carrying out DPT-related services must obtain a license and have a registered office in Singapore. In a bid to tackle money laundering and terrorism financing, the MAS issued Notice PSN01 and PSN02 (the Crypto Travel Rule, as it is popularly called). These notices detail the guidelines pertaining to Anti-Money Laundering (AML) and combating the financing of terrorism (CFT) for DPT service providers. However, both PSN01 and PSN02 were canceled on April 4, 2024, as the MAS decided to expand the scope of the regulated payment services. Their requirements, however, were incorporated into a broader set of regulations. Crypto exchanges and related service providers are required to obtain a capital market services (CMS) license, along with meeting the financial requirements of the MAS. Some consumers had concerns about the safety of funds and sought a more transparent accountability and risk declaration process. The authorities of Singapore discovered this through public consultation in a bid to know the public perception towards DPTs. Taking the feedback into account, the MAS released a new regulation on DPT service providers in July 2023, which ensured transparency by protecting customers’ funds for a time in case of bankruptcy. In the words of MAS: Furthermore, the MAS went on to seek public feedback on drafting a new legislative amendment to PSA. They utilized the feedback and implemented it in the first quarter of 2024. The MAS amended the Payment Service Act, focusing on DPT service providers. This new amendment expanded the act to regulate three types of additional services, which are: Under this new amendment, service providers are mandated to separate their assets from those of customers, which they hold in trust. A great chunk of the customer’s assets, like 90%, must be stored offline in cold wallets. Also, the amendment emphasized the need for not letting a single individual manage and control customer assets, although this restriction is lessened for smaller companies where two individuals are allowed to do so. Current State of Crypto Adoption in Singapore About 89% of Singaporeans are aware of at least one cryptocurrency. This is one of the key highlights of the 2024 Independent Reserve Cryptocurrency Index (IRCI) report for Singapore. The IRCI is an annual survey of 1,500 Singapore residents. Source: Independentreserve.com The report goes on to show that 40% of citizens own or have owned crypto in the last 12 months. About 73% of crypto investors hold Bitcoin, while 41% of these investors put $500 or more per month into crypto. Source: Independentreserve.com Another study indicates that Singapore sits on the top spot as the global leader in cryptocurrency adoption, beating countries like Hong Kong, the United Arab Emirates, and the United States. The firm that carried out this study, Henley and Partners, a global leader in residence and citizenship investment, evaluated the state of cryptocurrencies in different countries and created the Henley Crypto Adoption Index 2024. This index was drafted from 28 countries between July and August 2024, where researchers collected data through investment migration programs. The research was focused on these key areas: public adoption, infrastructure, innovation and technology, regulatory environment, economic factors, and tax friendliness. Source: Henleyglobal.com Singapore scored the highest with 45.7 out of 60 points, leading the globe on crypto adoption, all thanks to its friendly business, financial, and regulatory environment. However, there has been a slight decrease in the ownership rate of cryptocurrencies in Singapore from 2022 to 2024. In the 2024 Global State of Crypto Report by Gemini, the ownership rate of cryptocurrencies in Singapore dropped slightly from 30% to 26%. The respondents (49% of them) cited regulatory
Eritrea
Current Economic Situation in Eritrea Eritrea is one of the least developed countries in Africa. Its economy has suffered from poor governance and finance mismanagement, poor structural reform policies and commitments, and underdeveloped legal frameworks. The country’s population is 3.6 million, with an 8.1% unemployment rate. Inflation stands at 7.5% while the public debt is 176.3% of the GDP. Sources: Visiteritrea.net The economy of this East African nation is considered “repressed”. This is due to its poor rating on the 2024 Index of Economic Freedom. Eritrea’s economic freedom score is 39.5, and it ranks 170th out of 184 countries. In the Sub-Saharan Africa region, it ranks 44th out of 47 countries. In a report titled “IMF Executive Board Concludes 2019 Article IV Consultation with the State of Eritrea”, the Directors at IMF while dissecting the economy of Eritrea have this to say: Eritrea’s economy still suffers from the chronic deficits caused by the regional insecurity in 1998. In a bid to improve the economy, the government is tightening fiscal policies to reverse the effects. These policies have been hard on businesses, as just a few sizable private businesses exist. However, the statistics are improving. In 2023, agriculture accounted for 17.6% of Eritrea’s GDP, which was 10.6% in 2004. The industry’s share grew from 19.6% in 2004 to 32% in 2023. The African Economic Outlook (AEO) projects that the GDP will stabilize at 2.9% in 2024 (as it was in 2023) and with an increase to 3.1% in 2025. Source: Afdb.org The mining sector will lead this growth on the supply side, while private consumption and investment will lead on the demand side. Crypto Law in Eritrea There is no regulation of cryptocurrencies in Eritrea. However, they are legal. The government’s stance on crypto has been cautious but not restrictive like other African nations. Source: Arksigner.com The absence of regulation has created a gray area leaving businesses and individuals who utilize and patronize these digital assets at their peril. Current State of Crypto Adoption in Eritrea There is currently no publicly available data on the adoption rate of cryptocurrencies in Eritrea, likewise, there is no past data. This makes it difficult to analyze the current state of crypto in Eritrea or even draw future projections. However, crypto exchanges such as UEEx, Binance, Bybit, SpectroCoin and others are virtually catering to the small portion of the population that is adopting this technology, especially tech-savvy young Eritreans. Factors Driving Adoption The fiscal policies in Eritrea are quite strict and not flexible like in neighboring countries. To evade them, some citizens are embracing alternative decentralized payment solutions. Source: AfricanNews.com The Directors of the IMF complained about these policies in its report: The tech-savvy youth population of Eritrea are adopting virtual currencies for wealth creation and investment purposes. They also explore this option to escape the hassle of the traditional banking system, whose policies are not very accommodating. Challenges Facing Crypto Adoption in Eritrea Source: Forbes.com No Legal Framework The unregulated nature of cryptocurrencies in Eritrea poses doubts and uncertainty in the minds of crypto users and potential consumers, thus limiting the adoption rate of this emerging technology. Poor Internet Infrastructure Another pending challenge is the limited internet infrastructure in Eritrea. The internet is not readily available everywhere like in other countries. Even in major cities like Asmara, the nation’s capital, there are few internet cafes. Source: Poweronpro.com You can only get connected to the internet in places like hotels, government organizations, and educational and research institutions. The connection is still limited and heavily regulated by the government who keeps a close eye on activities that happen in such places. The need for a stable and readily available internet for crypto mining, minting, and even for day-to-day transactional uses cannot be overemphasized. A limited and regulated internet will continue to limit the adoption of crypto in Eritrea. Electricity Crisis The International Energy Agency (IEA) has disclosed that less than half of the population in Eritrea has access to electricity. This is also another serious setback. Activities like crypto mining require a lot of energy which without, will drastically limit the adoption rate. Source: IEA.org Education and Digital Literacy In the words of Albert Einstein: More education and digital literacy on emerging technologies such as cryptocurrencies are needed in Eritrea to fully harness the benefits of these technologies. UNESCO’s Institute for Statistics in 2018 said that adult literacy in Eritrea stood at 76.6%, with youth (15 – 24 years) literacy at about 93.3%. Although this displays progress from the 52% literacy rate of adults and 77.9% of youth in 2002, more work still needs to be done. The more education and digital literacy spread across Eritrea, the more open-minded and receptive they would become towards virtual currencies. Source: X.com The Potential for Cryptocurrency in Eritrea Remittances Globally, Eritrea is one of the most diasporic nations with over one-third of its population living abroad. Source: Nationaleconomy.com This creates a big market for international transfers as most Diasporans are sending money over to loved ones and vice versa. As such, they would require faster transaction rates with cheaper fees, and this is where cryptocurrencies would come in as they do offer that. Financial Inclusion Although a good number of Eritreans have bank accounts due to the restriction on hoarding and use of cash by the government, there are excessive regulations on these bank accounts. These regulations range from low monthly limits on withdrawals to restrictions on sending foreign currency abroad. Aside from these, the obsolete technologies used at these traditional banks are frequently subjected to extended power cuts, forcing them to cease or limit services. Virtual currencies could solve all these problems as they have higher limits, lesser restrictions, lesser transfer charges and offer better technology. Cross-border trade International trades could be facilitated with cryptocurrencies as they also help to bypass some of the traditional banking restrictions. The lower transaction costs and speed it offers give it a competitive advantage. Conclusion An increasing interest in the adoption
Croatia
Current Economic Situation in Croatia Croatia is one of the largest economies in Southeast Europe in terms of nominal gross domestic product (GDP). This is due to its accommodative foreign policy, which is highly dependent on European international trade. The country’s financial center, Zagreb, reflects the strongest growth points in Central Croatia. It shows an impressive level of high human development, high quality of life, and low level of income inequality. Source: Moorings.com Over the years the labour market has been inefficient. This is due to ineffective tax policies and inconsistent business standards. However, Croatia is considered a high-income country. It is also notable that Croatia is an emerging force in the power sector, as it is making huge and strategic investments in Liquefied Natural Gas (LNG), geothermal power, and electric vehicles. Croatia is a remarkable tourist destination in Europe, with about 20.3 million arrivals in 2023. The Tourism sector accounts for close to 20% of its GDP. The tertiary sector (service sector) accounts for a whopping 70% of the country’s GDP. However, tourism investments are not the only selling point of Croatia, as the country is an open market to many opportunities for investors and entrepreneurs. To further improve its economy, the World Bank suggests that: Crypto Law in Croatia Source: Adeleke University Cryptocurrencies are legal and remain mostly unregulated in Croatia. However, due to money laundering and terrorism concerns, the government regulates it through its anti-laundering laws. Sound contradictory? Let’s break it down. While Croatia doesn’t have specific regulations for virtual assets or cryptocurrencies, they’re still subject to anti-laundering laws. By the way, virtual assets (or virtual currencies) refer to cryptocurrencies. The Croatian government’s definition goes: This definition is according to the Anti-Money Laundering and Counter-Terrorist Financing Act in Croatia. Despite providing this definition, the Croatian government’s restrictive regulations reflect scepticism towards this new technology. Just like most European Union member states, they believe cryptocurrencies lack the legal criteria to qualify as a legal tender. However, from a tax perspective – cryptocurrency trading would qualify as a financial transaction. In confirmation, the Financial Stability Council in Croatia has notified the public that Croatian regulators are not responsible for overseeing virtual currency transactions. AML and HANFA: The Regulation and Enforcer The journey of regulating cryptocurrencies due to money laundering concerns in Croatia started in 2020 when the Croatian government implemented the European Union’s 5th directive. As part of the implementation process, it amended the Law on Combating Money Laundering and the Financing of Terrorism (Zakon o sprječavanju pranja novca i financiranja terorizma), popularly referred to as AML. Source: Radical Compliance Specifically, the AML regulation focuses on two types of crypto enterprises, which are exchange services and wallet providers. The providers of exchange services are businesses that convert virtual currencies, in this sense, cryptocurrencies to fiat currencies and vice versa. Other crypto enterprises such as mining operators are not regulated by the AML. The Croatian Financial Services Supervisory Agency, popularly referred to as HANFA is responsible for enforcing the AML, and as such, is the regulatory authority of crypto service providers in Croatia. HANFA oversees virtual currency exchangers and custodian wallet providers due to money laundering and terrorism concerns. However, HANFA does not issue licences to these operators but must be notified of their presence in Croatia. For more context, any business that offers crypto exchanges or wallet services must notify HANFA of its existence within 30 days of formation. Failure to do so will result in a fine. The Role of HANFA in Crypto Regulation in Croatia Let us be clear, HANFA does not actually regulate cryptocurrencies in itself, rather they prevent money laundering that may occur in the cryptocurrency space. To further reiterate this in the words of HANFA: How does HANFA achieve this? They achieve this by regulating cryptocurrency exchanges through: Tax on Cryptocurrencies Furthermore, crypto investors and users should be aware of the possible tax consequences that arise from cryptocurrency transactions. Source: Offshore-Freedom.com The Croatia’s Financial Stability Council gave the following warnings: Current State of Crypto Adoption in Croatia In Croatia, crypto adoption has been on steady growth, with a revenue market share of about US $6.1 million in 2024 from US $3.3 million in 2023. The number of active users of cryptocurrencies in Croatia is projected to reach 170,100 by 2025. An average Croatian contributes about US $36.1 to the cryptocurrency market as of 2024. Despite no specific regulations on cryptocurrencies, Croatia has seen a high influx of users and adopters of this emerging technology. Many businesses such as hotels, restaurants, museums, gas stations, humanitarian associations, and even local government institutions are now accepting crypto as a means of payment. An increasing number of people are also exploring investment opportunities in cryptocurrencies. Alt text: A table showing the number of cryptocurrency holders in Croatia Source: Resp Conference Croatia ranks 13th on the list of most crypto-accepting countries by CryptoHead in 2024. CryptoHead ranks countries with several key factors, such as the number of cryptocurrency ATMs and their availability, the governments’ attitudes towards this technology, legal regulations and frameworks, and the people’s interest through their search history. Source: Crypto Head It is quite laudable that Croatia is just behind countries such as the United States, United Kingdom, Germany, Canada, and a few others. This speaks volumes to the increasing interest of Croatians towards this new technology, despite the regulatory oversight from the government and its regulatory bodies. Some Use Cases of Crypto in Croatia Postal Services Croatian Post has integrated “Crypto stamps” into postal services. In collaboration with the Croatian blockchain community, this crypto stamp is a package that consists of a physical stamp and a digital token that enables people to stamp their digital wallets. Source: Kripto.posta.hr/ The physical stamp, worth EUR 6,64 can be used to send mail items, basically like any other stamp, while the digital token is kept as a virtual collection in wallets. This token consists of five different motifs, each with a different degree of uniqueness: drone (1,000 copies),
Dominican Republic
Current Economic Situation in the Dominican Republic The Dominican Republic has the largest economy in the Caribbean and Central America region and the seventh largest in Latin America. The key drivers of its economy are mining, tourism, trade, and foreign investments. Source: World Bank The economic growth on this island has witnessed tremendous growth over the past two decades. According to the World Bank, the economy of the Dominican Island has tripled in growth and 2.8 million people have been lifted out of poverty. In 2024, the economy is projected to grow by 5.1% due to monetary simplification, increased public investments, and a record influx of tourists. Strong consumption and investment are identified as the cause for advancing the economy with support from reforms in areas such as fiscal policy, energy, water, and employment, as well as initiatives to improve education and attract foreign investment. The government has been committed to ensuring transparency and accountability in various sectors, especially the energy sector which has faced challenges over time. These reforms are creating a serene environment for the private sector to flourish, opening doors for tailored solutions and development. The logistics and financial sectors, which are testaments to this, are now attracting a pile of investors to the Dominican Republic. Crypto Law in the Dominican Republic Cryptocurrencies are not legal currencies in the Dominican Republic and are not backed by the country’s Central Bank. Therefore, the Bank does not issue any license or have any regulation towards it. Source: Tekedia.com Financial Institutions that are authorized to operate in the Dominican Republic may not use these virtual currencies to transact businesses. Individuals who acquire and accept them as payment, on the other hand, do so at their own risk. The Central Bank has highlighted over time that cryptocurrencies may provide grey areas that would facilitate financial instability, tax evasion, corruption, and money laundering. Regulated financial institutions that deal with cryptocurrencies may face fines or sanctions. Recently, the Republic has reaffirmed Law 183-02, which states that all money debts must be paid in the legal currency. The Crypto Taxation Framework While cryptocurrencies are not regulated in the Dominican Republic, earnings from activities such as trading and mining are subject to tax. Source: Inquesta.co.uk The island follows a territorial tax regime with the following rates: This rate is considered favourable with no capital gains on trading profits and it applies to cryptocurrencies. Current State of Crypto Adoption in the Dominican Republic MasterCard researched the adoption rate of cryptocurrencies in the Dominican Republic and released the results in mid-2022. The research showed that 85% of consumers agreed to have used an emerging form of payment, either biometrics, cryptocurrencies, QR codes, or contactless payment the previous year. The survey shows that: Recommended reading: How to Use Historical Data for Accurate Crypto Trend Line Analysis Dominicans’ interest in virtual currencies is on the rise. They see this emerging technology as a payment instrument for everyday products and services and for investment purposes with high positive returns.This explains why the user crypto adoption rate in the Dominican Republic has been skyrocketing since 2020, with indications for further progression up to 2027, as reported by Statista. As of 2024, an average Dominican contributes US $114.60 to the crypto market. Alt text: A chart showing the average revenue per user in the Dominican Republic Source: Statista Despite the government’s stance towards cryptocurrency, CoinTelegraph considers it ‘progressive’ in comparison to neighboring Bolivia, Ecuador, and Venezuela. Source: Cointelegraph Factors Driving Adoption Traditional financial setbacks, such as incurring losses after each transaction and high credit card payment costs, are pushing Dominicans, especially its youth, to explore other payment alternatives, such as cryptocurrencies. About 49% of adults on this island remain unbanked or underbanked. Even the capital, Santo Domingo, faces this significant problem with numbers on the increase. The traditional banking experience is not appealing. The process and requirements to own bank accounts are quite cumbersome, forcing citizens to explore other alternatives. The yearly influx of international tourists creates an avenue of seamless payment alternatives, such as virtual currencies. Businesses that mostly provide services to these tourists are forced to be open-minded about this emerging technology. Challenges Facing Crypto Adoption in the Dominican Republic Many local businesses do not understand crypto well, which has led to a closed-minded attitude. Bars, hostels, restaurants, and other traditional businesses are skeptical of cryptocurrencies due to no regulation by the government. Because of this, many Dominicans are also hesitant to attend Bitcoin and other crypto events. Source: Villanovau.com The government’s consistent warnings about the monetary concerns such as money laundering and scams that arise with the use of crypto have limited its widespread use. This has triggered more concerns about increasing adoption. Recommended reading: Best Strategies to Protect Yourself Against Crypto Scams The electricity and power crisis is also a setback to the adoption of this technology if not properly addressed. The island has been faced with a prolonged issue of electricity theft through illegal connections, high retail tariffs to cover these inefficiencies, low bill collection rates, etc. This poses a threat to mining and transactional operations. The Potential for Cryptocurrency in the Dominican Republic Optimism lingers still for the future, even though the adoption of crypto is still in its budding stage. Source: Freemanlaw.com Expanding the integration of cryptocurrencies into the financial sector would cater to the underbanked population in ways the traditional system has yet to achieve. From transaction costs to lesser requirements, it would help foster innovations. There are some notions that blockchain technology could help solve the problem of tax evasion in the country. The Dominican Republic has been battling with the issue for a while, and it has impacted negatively on the country’s GDP. Blockchain technology could salvage this situation through its public ledger and transparent features. Conclusion The stance of the government towards regulations and its consistent warnings due to money laundering and scam concerns has limited the widespread adoption of crypto in the Dominican Republic. Despite this, the youthful Dominicans
Cameroon
The adoption of cryptocurrencies in Cameroon has been slow but has experienced steady growth due to its young and tech-savvy population. Individuals and businesses are opting for crypto-based solutions due to their decentralized nature, transparency, and security benefits. Cameroon boasts a population of over 29 million persons, with over 900,000 already adopted cryptocurrencies and other digital assets. Revenue of the crypto market is projected to reach US $2.59 million by 2024 from US $1.79 million in 2023. An annual growth rate of 12.31% (US $4.12 million) is expected by 2028 (Statista). However, this growth is being threatened by regulatory challenges, market volatility, education, technical expertise, the emergence of Ponzi schemes, and cryptocurrency-related scams. Let us explore all these in detail. The Rise in Adoption of Crypto in Cameroon The emergence of COVID-19 in 2020 brought about a high influx of users of digital platforms for transactions due to their versatility and convenience. This brought about a spike in the revenue of the cryptocurrency market in Cameroon from about US $220,000 in 2020 to a whopping US $1.3 million the following year, in 2021. Source: Statista The early stage of crypto adoption in Cameroon was just as it was in other countries within the African continent. It was faced with skepticism and was approached cautiously due to its technical nature. Education and the technical expertise to explore this new technology were limited. However, some individuals and small-scale businesses led the way, and over time, as awareness of blockchain technology started gaining more traction, the acceptance grew. This acceptance skyrocketed when the winds of economic growth due to crypto adoption became clearer in other countries. Current State of Crypto Adoption in Cameroon The usage of cryptocurrency in Cameroon is quite limited due to the lack of regulation and price volatility issues, and as such, most traders do not accept cryptocurrencies as payments. However, some local startups and businesses are coming to the rescue. These crypto-based startups have developed exchange platforms where users can trade cryptocurrencies in Cameroon. Currently, there are over 20 cryptocurrency startups in Cameroon, which include Ejara, Interstellar, Simbcoin Swap, UNICORN Token, AmbaCoin, and others. Source: Mercy Corps These companies are changing the narrative by simplifying the complexities of cryptocurrencies and making it easier for the Cameroonian people to harness the potential of this technology. Recommended reading: History of Cryptocurrency Exchanges It is worthy of note that Cameroonians who are adopting cryptocurrencies are utilizing social networks and online forums to share information and hold discussions continually on cryptocurrencies. Social platforms such as Telegram groups and Facebook pages are being used to connect enthusiasts and provide a space for answering questions, sharing tips, and discussing market trends. The Key Players The cryptocurrency market has witnessed a dynamic interplay of various key players, despite being in its budding stage. These players are making their mark in contributing to its growth in Cameroon. The market is filled with cryptocurrencies such as Bitcoin, Ethereum, and a few notable others gaining momentum. These digital currencies are mostly not just used for investment purposes but also gaining ground as a medium of payment. Startups The emergence of crypto-based startups, as earlier mentioned, eased the buying, selling, and trading of digital currencies. They provide services that accommodate all kinds of users, from simple wallet functionality to complex trading options for novices and pro traders. Furthermore, these companies are essential in providing access and liquidity to the market, serving as the backbone of cryptocurrency transactions in Cameroon. A lot of these FinTech startups and technology firms have been actively building the cryptocurrency landscape in Cameroon and deploying blockchain solutions. Their involvement is not limited to crypto exchange but has extended to consulting services, customization of cryptocurrencies, and application of blockchain-based solutions to addressing conventional problems. International Players International players are not left out, as they are also making their mark in Cameroon. In 2022, Binance collaborated with Inoni Tech to launch the first-of-its-kind crypto hub-training center for in-person blockchain education sessions. Through this hub, a lot of crypto enthusiasts are getting more resources and the required education and information to thrive within the ecosystem and as well build offline connections. These international players acknowledge the strategic position of Cameroon in Central Africa and the untapped potential of its tech-savvy population. This is a testament to their presence and involvement in the market and their contribution to the growth of crypto education in Cameroon. Consumers The consumer’s interest and adoption in cryptocurrency vary demographically due to factors such as age, level of education, and urban settlement. Cameroon is a youthful country, with over two-thirds of the population under the age of 30. This demographic is also tech-savvy and can easily adopt emerging technologies, such as cryptocurrency. Coupled with age, the level of education also influences crypto adoption. In 2020, the World Bank reported that the adult literacy rate in Cameroon stood at 78.23%. This has contributed to the high usage of cryptocurrencies in recent times. Cameroonians in urban settlements are more exposed to digital innovations like crypto due to the exposure that comes with their location. According to Worldometer, a global data company, 59% of Cameroonians reside in urban settlements. These are all testaments to the steady growth rate in the adoption of cryptocurrencies in the country. Source: Wordometer The Regulatory Complexities and Legal Framework The regulatory and legal framework for cryptocurrencies in Cameroon is very complex and continuously evolving. Currently, the government, alongside its regulatory bodies, is yet to develop a specific legal framework that encapsulates all the intricacies of the crypto space with regard to Cameroon. There are also concerns that cryptocurrencies could diminish the country’s foreign exchange reserves. To put this into more context, the official currency of Cameroon is the Central African CFA franc. To transact with cryptocurrencies, they would have to convert it to dollars, which would weaken the CFA franc and strengthen the dollars. Jean-Clary Otoumou, the Director General of Operations at the Central Bank of Central Africa States (BEAC), made this
Bahrain
The Kingdom of Bahrain crypto market is projected to hit a revenue of US $2.1 million in 2024. However, it will have a negative annual growth rate of -3.83% by 2025 (US $2.0 million). But hey! We all know the market is a rise-and-fall game, don’t we? Source: Statista.com The Kingdom, as it is often called, has been a strong believer in crypto, and one of the early adopters of crypto banking regulation in the Middle East, when compared with counterparts such as Kuwait and Oman, of course. In the last quarter of 2017, when countries such as Korea and Singapore were making their mark in the ‘cryptoverse’, Bahrain was not left out, as it took an innovative crypto experimentation, which laid the foundation of its stronghold today in the financial sector. The Sandbox Approach: Bahrain’s Crypto Experimentation to Cautious Adoption In 2016, the United Kingdom’s Financial Conduct Authority launched its first crypto regulatory sandbox. Similarly, in Singapore, the Monetary Authority of Singapore (MAS) launched what it termed the FinTech Regulatory Sandbox. A Sandbox is a controlled playground where applications, files, or codes can be tested without affecting the rest of a system. So what then is a Crypto Regulatory Sandbox? Simply put, Crypto Regulatory Sandboxes are live-testing environments that allow for security checks and regulatory compliance for cryptocurrencies or other financial transactions. In 2015, the first Regulatory Sandbox was established and launched in the United Kingdom. Since then, the word and technique have traveled across continents. The Kingdom of Bahrain watched closely and replicated these sandbox technologies in 2017 to experiment with blockchain technology. In the words of Khalid Al Rumaihi, the then Chief Executive of the Economic Development Board of Bahrain, and currently, the Executive Chairman of Amriya Group, said, while responding to some queries at the MIT Innovation Forum in 2018. In affirmation of his statement, Rain Financial became the first crypto exchange to join the Sandbox experiment in Bahrain. Sooner than later, the Central Bank of Bahrain (CBB) issued Rain Financial the license to operate as a crypto service provider in 2019. It is worthy of note that Rain was also the first licensed cryptocurrency exchanger in the Middle East, which gave it an unprecedented opportunity to lead the region in the cryptoverse. Binance, which is one of the biggest and leading crypto exchange providers, was issued a license by CBB to also operate in the Kingdom in March 2022. Since then, Bahrain has been open arms to operators such as CoinMena and, recently, BitOasis. Recommended reading: History of Cryptocurrency Exchanges The CBB Positioning Bahrain as a Global Leader in Crypto Adoption In the words of Gordon B. Hinckley, “You can’t build a great building on a weak foundation. You must have a solid foundation if you’re going to have a strong superstructure.” The CBB has been the solid foundation holding firm the superstructure of cryptocurrency in Bahrain through: Regulations The CBB is the regulatory body responsible for issuing licenses for Bahrain’s crypto assets, collectively called Crypto Asset Service Provider (CASP). This regulatory framework is currently part of the CBB Rulebook (Volume 6), which governs the financial markets. CBB has been cementing Bahrain’s position as a global leader in the fintech sector by ensuring a dynamic regulatory environment and embracing crypto assets. In a bid to broaden the scope of tradable assets to include crypto, Bahrain’s central bank outlined in Resolution No. (45) of 2023. This identifies the significance of digital currencies while clamoring for proper oversight and, at the same time, being subjected to specific rules and regulations. Security With robust security measures, the CBB has ensured all crypto-asset service providers adhere to and build on the existing Crypto-Asset (CRA) Module of its rulebook. Since its inception, adherence to global benchmarks like the Crypto Currency Security Standards (CCSS) has been non-negotiable in Bahrain. These standards include multi-factor authentication, data protection, proof of reserves, ensuring integrity of transactions, and wallet controls. Innovations To validate its commitment to a future-proof framework further, the CBB amended the CRA Module in 2023. This amendment establishes a new chapter on digital token offerings and grants the CBB additional operations, such as crypto-asset licensees on a case-by-case basis. This approach brings flexibility and lauds innovation while improving and maintaining regulatory control. Partnerships Bahrain’s central bank did not stop there. It did not restrict its innovation and approach within its borders but extended it by collaborating with the Agile Nations Network, an inter-governmental regulatory network that joins forces on innovative practices between participating governments. Led by UAE’s Artificial Intelligence Office, the CBB partnership with Agile Nations Network has brought about knowledge sharing and fostered best practices. Through innovation, partnerships, and robust oversight, the CBB is revolutionizing and creating a fairground for crypto players and users to harness the full capabilities and powers of digital currencies. Bahrain: The Ideal Home for Crypto Companies The Kingdom of Bahrain has been an attractive destination for blockchain and crypto companies due to its supportive business environment, sandbox approach, regulatory foresight, and strategic location. Let’s go into details: Supportive Business Environment: Crypto companies have gotten a lot of support from the government of Bahrain and that has skyrocketed the fintech sector. This support ranges from initiatives and incentives such as simplified business registration processes to tax advantages. Source: Statemag.state.gov The government has been hands-on in embracing digital transformations, which has piloted and made Bahrain a global leader in technological advancements. Bahrain has also been an ideal destination due to its wider GCC market. Bahrain’s crypto market has been on a steady growth trajectory due to the proactive collaborations between the government, regulators, and stakeholders. Regulatory foresight: The Central Bank of Bahrain has ensured that all regulatory frameworks are streamlined and sleek for crypto exchanges. This has positioned Bahrain as a leader in technological advancements in the Middle East. The regulatory framework ensures that crypto companies operate in a secure environment and are transparent with their activities, building investors’ confidence and making it easier for crypto enterprises