Crypto-related Financial Criminality in Africa Spotted as Major Concern at Cape Town Symposium, Underlining the Urgency for Action
In May 2025, a symposium titled "Investigating Illicit Financial Flows and Cryptocurrencies in Africa" took place in Cape Town. The event brought together 30 specialists, including investigative journalists, researchers, and blockchain technologists, to discuss the challenges and solutions surrounding cryptocurrency-fueled financial crimes in Africa.
Challenges
The surge in crypto-related financial crimes, such as money laundering, fraud, and illicit money flows, poses a significant threat to Africa’s economic stability and development. Rapid adoption of cryptocurrencies outpaces the establishment of strong regulatory frameworks, creating gaps that criminals can exploit. Weak regulatory oversight and limited investigative capacity across African countries make it easier for illicit actors to operate across borders.
There are concerns about cryptocurrencies being used to circumvent existing financial regulations, facilitating unauthorized foreign exchange trading, terrorist financing, and fraud. A notable example is a Nigerian-linked crypto fraud ring that scammed over $97 million, demonstrating the complexity of tracking and dismantling crypto-related financial crime networks that leverage both traditional and crypto financial systems.
Proposed Solutions
Experts called for urgent reforms to strengthen regulatory frameworks across African countries, emphasizing the need for laws that enable better oversight of crypto activities. They advocated for enhanced cross-border cooperation among African states and international partners to trace, freeze, and recover illicit funds flowing through cryptocurrencies.
Building stronger investigative capacities by training specialists in blockchain technology and financial forensics was another proposed solution. The call was made for cryptocurrencies to be tools for financial inclusion and empowerment, with transparency and accountability measures to prevent misuse.
Organizations like the Tax Justice Network Africa committed to working with policymakers, civil society, and researchers to improve tax transparency, challenge illicit investment practices, and reinforce sovereignty over natural resources to mitigate financial crime.
Countries such as Ghana are developing regulatory approaches, including public advisories, regulatory sandboxes, and oversight by multiple regulatory bodies (e.g., central banks, securities commissions) to manage cryptocurrency risks while fostering innovation.
A Unified Response
Addressing crypto crime requires a united effort. The symposium participants recognized this and urged for a coordinated, multi-stakeholder response blending strengthened regulations, cross-border cooperation, improved investigative capabilities, and balanced policies to harness cryptocurrency’s benefits while combating its abuse for financial crimes across Africa.
The symposium was organized by Code for Africa (CfA) in partnership with Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) under the African Digital Democracy Observatory (ADDO) initiative. The Tax Justice Network Africa reiterated its commitment to building a just and equitable continent, working with researchers, policymakers, and civil society to transform tax policies, challenge harmful investment practices, enhance tax transparency, and restore sovereignty over natural resources.
Africa cannot afford to remain passive in the face of emerging digital financial threats. The symposium on "Investigating Illicit Financial Flows and Cryptocurrencies in Africa" was held in Cape Town from May 23 to 27, 2025. Ms. Mercy Kamau, TJNA's Communications Officer, stated that cryptocurrencies should be tools for empowerment, not enablers of crime.
- Amid concerns of cryptocurrencies being used in terror financing, unauthorized foreign exchange trading, and fraud, African nations are encouraged to establish partnerships with international organizations to enhance their investigative capacities, particularly in blockchain technology and financial forensics, as part of a unified response to combat crypto-related financial crimes.
- As Ghana develops regulatory approaches to manage cryptocurrency risks, leveraging public advisories, regulatory sandboxes, and oversight by multiple regulatory bodies, the sports industry could potentially harness cryptocurrencies in weather-affected regions for disaster relief fundraising, promoting transparency and accountability while preventing misuse.
