Africa Crypto News: Circle Backs Blockchain Fund, South Africa Addresses Crypto Taxation
This week in African crypto news, Circle, the issuer of USDC, is supporting a $20 million fund to accelerate the growth of blockchain startups on the continent. Meanwhile, South Africa is enacting new laws to enable smooth crypto taxation, and Nigeria's Fintech startup Kredete has secured $22 million for international expansion.
Circle Invests in African Blockchain Startups
Circle, a major player in the cryptocurrency space and a public company (CIRCL), is backing CV VC, a $20 million blockchain fund, to bolster the digital asset ecosystem in Africa. This investment comes as CIRCL stock faces increasing pressure amid heightened competition in the stablecoin market.
CV VC, based in the Cayman Islands, will focus on early-stage blockchain startups involved in payments and data infrastructure within the region. Circle recognizes the potential for stablecoin-powered utility in the growing African digital asset market.
“Solving real-world problems with stablecoins will help address currency volatility while offering more USD to businesses,” – Gillian Darko, Vice President of Strategy at Yellow Card.
The growing digital currency settlements in Africa, with stablecoins frequently used as a trade pair, underpin this sentiment. Investing in payments and fintech startups is anticipated to increase USDC usage.
South Africa Aligns with International Crypto Tax Standards
The South African government has unveiled draft regulations aimed at complying with the OECD’s Crypto-Asset Reporting Framework (CARF). This move aligns the nation with global tax and reporting standards.
The regulations will be implemented under the country's existing Tax Administration Act of 2011. The OECD Framework, established in 2022, addresses the risks posed by crypto usage to international tax compliance. By adopting these measures, South Africa aims to maintain its standing with global regulators and institutions.
South Africa's proactive approach to crypto regulation is seen as supportive, fostering growth within the sector.
Kredete Secures $22 Million to Expand Operations
Kredete, a Fintech and crypto startup based in Nigeria, has successfully raised $22 million to fuel its international expansion. This investment is expected to significantly enhance financial inclusion, enabling more users to participate in the crypto market, potentially including investments in meme coin ICOs.
