🟠 When money buys regulation

SARB governor pushes back on crypto lobbying in politics

Topline: The South African Reserve Bank (SARB) governor, Lesetja Kganyago, has raised concerns over cryptocurrency firms spending millions to influence government policies.

• Speaking at the World Economic Forum in Switzerland, Kganyago warned against the risk of “regulatory capture,” where financial regulations are shaped by corporate interests rather than public policy goals. (Details)

Why it matters: Crypto lobbying is already making waves in the U.S., where firms like Coinbase and Ripple have spent over $119 million backing pro-crypto candidates.

Zoom in: South Africa has some of the most advanced crypto regulations on the continent, with over 240 licensed crypto firms.

• Still, the country remains cautious about the extent of crypto’s influence on financial policymaking.

Kenyan crypto group fights for fairer regulations

Topline:​ Kenya’s Virtual Assets Chamber of Commerce (VACC) has submitted a set of policy recommendations to the country’s regulators, urging changes to the proposed digital asset tax (DAT) and advocating for a Kenyan stablecoin. (Details)

What’s in the proposal?

• Lowering the 3% digital asset tax (DAT): VACC argues that the tax is too high compared to global standards and could drive businesses out of Kenya.
• A local stablecoin: The group suggests developing a Kenyan stablecoin to reduce dependency on the U.S. dollar for crypto transactions.
• Alignment with global regulations: VACC advocates for a framework similar to the EU’s MiCA regulations to ensure Kenya remains competitive.

Context: In December 2024, the Kenyan National Treasury released a draft policy to shape the country’s virtual asset regulations, seeking public input.

• Before this, Kenya’s primary approach to crypto regulation was taxation. In 2023, the country introduced the digital asset tax (DAT) under the amended Finance Act.
• The 3% tax on gross income from crypto trades applies regardless of whether a trader makes a profit or loss or is simply transferring assets between exchanges.

Big picture: Kenya has one of the largest crypto markets in Africa, but its regulatory landscape has been uncertain.

• With public consultations now closed, all eyes are on how the government will respond.
• The country is also studying regulatory approaches from countries like the UK, France, the USA, Singapore, Mauritius, Nigeria, and the EU.

Accrue raises $1.58M to expand African crypto payments

Topline: African crypto payments company Accrue has raised $1.58 million in seed funding to scale its cross-border payments service across Africa. (Details)

• According to the announcement, the seed round was led by crypto venture firm Lattice Fund — supported by Maven 11, Distributed Capital and other investors.

How it works: Accrue lets users send money in their local currencies while stablecoins power the transactions on the backend.

• The company uses a peer-to-peer agent model, similar to cash remittance networks.

Before now

• Accrue, founded in 2021, initially offered a simple way for users to invest in cryptocurrencies and other investment instruments for the long term. 
• It employed dollar-cost averaging, an investment method that allows users to invest a lump sum in staggered chunks over time instead of all at once. 
• However, following the crypto market crash in 2022, it expanded its services to include cross-border payments. 
• Accrue claims it has over 200,000 users across six African countries, including Ghana, Kenya, and Nigeria.

Coming soon: Mariblock Roundtable 2.0

Topline: The next edition of the Mariblock Roundtable is coming up soon!

• If you missed the Stablecoins Edition in December, you definitely missed out on profound insights from industry experts on the growing role of stablecoins in driving economic growth and innovation across Africa.

Here’s a picture from one of the panel sessions.

Here’s your chance to make up for it.

• Details will be out soon, but as a Mariblock Weekly subscriber, you’re getting the first heads-up. Stay tuned, and keep your ears open for more updates!
• We’re open to partnerships. Do reply to this email if you’d like to learn more.

Catch up

🌍 Africa Tech Summit unveils 55 finalists for inaugural awards (Mariblock)

🇿🇦 South African blockchain-powered Uber rival (My BroadBand)

🌍 Crypto Among the Top 3 Most Affected Industries by Identity Fraud, Says ‘Fraud in Africa’ Smile ID 2025 Report (BitcoinKE)

Opportunities

• VISA opens applications for Cohort 4 of its Africa Fintech Accelerator Program. Deadline: March 25, 2025. (Details)
• African blockchain talent firm Web3Bridge has opened the waitlist for its 13th cohort. Join the waitlist here.

That’s it for this week.

Until next time, stay informed.

Cheers,

Ogechi.