Crypto giant Blockchain.com seeks expansion in Africa, capitalizing on developing regulations
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In a significant move, UK-based crypto exchange, Blockchain.com, is expanding its operations into African markets, particularly focusing on Nigeria, Ghana, Kenya, and South Africa. This strategic move is influenced by the evolving regulatory landscape in these countries, with notable progress in Nigeria and Ghana.
Regulatory Progress in Key Countries
Nigeria has established a comprehensive regulatory framework through the 2021 Investment and Securities Act. The Securities and Exchange Commission (SEC) regulates virtual assets as securities, enforcing Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols. Stablecoin issuers are required to maintain verifiable reserves and undergo audits [1]. This regulatory sandbox and framework are attracting international crypto firms like Blockchain.com, facilitating their market entry and operations with structured compliance and oversight.
Ghana is transitioning from a previously cautious stance to formal regulation. By September 2025, the country aims to license crypto platforms. The Bank of Ghana is developing a regulatory framework that includes consumer protection, anti-money laundering rules, minimum capital requirements for exchanges and wallet providers, and investor education [2][3][5]. This move is driven by the growing adoption of cryptocurrencies, with approximately 17% of Ghanaians holding cryptocurrencies [2].
Other West African countries such as Senegal, Côte d’Ivoire, and Benin are in varied stages of regulatory development. Senegal and Côte d’Ivoire operate in a legal grey zone, though regional bodies like WAEMU and BCEAO are influencing policy directions. Benin has begun aligning with anti-money laundering rules applicable to Virtual Asset Service Providers (VASPs), requiring initial authorization and compliance [4].
Blockchain.com's Expansion Strategy
The establishment of well-defined regulatory frameworks in Nigeria and Ghana provides Blockchain.com with a clearer legal environment and operational security, facilitating market entry and partnerships. Nigeria's SEC regulatory sandbox actively encourages international crypto platforms, offering Blockchain.com opportunities for innovation under regulatory supervision [1]. Ghana’s upcoming licensing regime with capital and compliance requirements signals a maturing market where Blockchain.com can leverage formal market status to build trust and scale services responsibly [2][5].
Countries with less formal regulation present greater uncertainty and operational risk, potentially slowing Blockchain.com’s expansion until local policies evolve. For instance, Kenya is currently in the research phase for crypto regulation. South Africa has taken steps towards crypto regulation but remains cautious.
Milestones and Future Plans
Blockchain.com claims 37 million verified users, 92 million wallets, and $1 trillion in transactions [6]. The company has announced that exchanges like Yellow Card Financial Inc. are seeking permits to operate following the passing of a new investment and securities law allowing for the licensing of crypto exchanges in Nigeria [1].
Owenize Odia, general manager for Africa operations at Blockchain.com, has stated that applying for a license in Nigeria is a top priority [7]. In fact, Blockchain.com plans to establish a physical office in Nigeria this quarter [8]. Ghana's central bank has released draft rules for regulating crypto platforms, aiming to start regulation by September 2025 [9].
Blockchain.com was valued at $14 billion in 2022 [10]. The company is targeting Nigeria, Ghana, Kenya, and South Africa for expansion, aiming to tap into the growing potential of these markets. As Africa cautiously opens the door to crypto regulation, Blockchain.com is positioning itself to lead in this new and exciting frontier.
References:
- Nigeria's SEC to Regulate Crypto Exchanges
- Ghana to License Crypto Platforms by September 2025
- Ghana's Central Bank Drafts Rules for Crypto Regulation
- Benin Aligns with Anti-Money Laundering Rules for VASPs
- Ghana's Regulatory Framework for Crypto Platforms
- Blockchain.com's User, Wallet, and Transaction Statistics
- Owenize Odia on Blockchain.com's Expansion Plans in Nigeria
- Blockchain.com to Establish Physical Office in Nigeria
- Ghana's Central Bank Drafts Rules for Crypto Regulation
- Blockchain.com Valued at $14 Billion in 2022
Technology plays a crucial role in Blockchain.com's expansion strategy, as the company leverages advancements in regulatory technology to navigate the evolving regulatory landscape in African markets. This includes adhering to Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols, as well as utilizing technology for investor education and audits of stablecoin issuers.
The establishment of formal regulatory frameworks in Nigeria and Ghana, facilitated by technological advancements in regulatory compliance, allows Blockchain.com to operate with structured oversight and build trust among users. In turn, this positions the company to scale their services responsibly and lead in the growing African cryptocurrency market.
