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Cryptocurrency regulation in Africa: advantages, motivation, regulatory models, challenges, consequences, and principles vs. rules-based regulation

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Listed:
  • Ozili, Peterson K

Abstract

This study examines cryptocurrency regulation in African countries. It identifies the advantages of cryptocurrency regulation, the regulators of cryptocurrency in African countries, and it identifies the existing cryptocurrency regulatory models in Africa. It also identifies the motivation for regulating cryptocurrency in Africa as well as the challenges and consequences of regulating cryptocurrency in Africa. The study also offers a perspective on rules-based versus principles-based cryptocurrency regulation in African countries. The study shows that majority of African countries adopt a “do-not-regulate” cryptocurrency regulatory model which indicates that cryptocurrency remains largely unregulated in many African countries. Few African countries adopt the full-scale cryptocurrency regulatory model, the total ban cryptocurrency regulatory model, the soft ban cryptocurrency regulatory model, and the use-at-own-risk cryptocurrency regulatory model.

Suggested Citation

  • Ozili, Peterson K, 2024. "Cryptocurrency regulation in Africa: advantages, motivation, regulatory models, challenges, consequences, and principles vs. rules-based regulation," MPRA Paper 127375, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:127375
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    References listed on IDEAS

    as
    1. Peterson K. Ozili, 2023. "Assessing global and local interest in eNaira CBDC and cryptocurrency information: implications for financial stability," Journal of Internet and Digital Economics, Emerald Group Publishing Limited, vol. 3(1/2), pages 1-17, March.
    2. Peterson K. Ozili, 2022. "Decentralised Finance and Cryptocurrency Activity in Africa," Contemporary Studies in Economic and Financial Analysis, in: The New Digital Era: Digitalisation, Emerging Risks and Opportunities, volume 109, pages 3-11, Emerald Group Publishing Limited.
    3. Hokkanen, Topi, 2023. "Externalities and market failures of cryptocurrencies," BoF Economics Review 4/2023, Bank of Finland.
    4. Bruno Biais & Agostino Capponi & Lin William Cong & Vishal Gaur & Kay Giesecke, 2023. "Advances in Blockchain and Crypto Economics," Management Science, INFORMS, vol. 69(11), pages 6417-6426, November.
    5. Pilkington Marc, 2016. "Blockchain Technology: Principles and Applications," Post-Print halshs-01231205, HAL.
    6. Satya Prakash Yadav & Krishna Kant Agrawal & Bhoopesh Singh Bhati & Fadi Al-Turjman & Leonardo Mostarda, 2022. "Blockchain-Based Cryptocurrency Regulation: An Overview," Computational Economics, Springer;Society for Computational Economics, vol. 59(4), pages 1659-1675, April.
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    Keywords

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    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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