Crypto uptake outpaces cyber safeguards across Africa, experts warn

November 27, 2025 in Business, Communications, Companies, Infrastructure, Science and Technology, Technology & Telecoms by Editor

Africa’s rapid adoption of cryptocurrency is reshaping digital finance but also exposing major cybersecurity gaps. As on-chain transactions surge past USD $200 billion, governments and regulators are racing to strengthen safeguards against fraud, hacking and illicit transfers. Experts say the continent’s emerging security frameworks could set global benchmarks for protecting high-risk digital markets.

Africa’s cryptocurrency boom is accelerating faster than regulators and security systems can adapt, widening exposure to financial crime across the continent. New data shows Africa processed USD 205 billion in on-chain crypto transactions between July 2024 and June 2025, cementing its status as the world’s third-fastest-growing crypto market. But the rapid uptake has also drawn increased attention from cybercriminals exploiting gaps in regulation and digital infrastructure.

Fuelled by economic uncertainty, high remittance costs, and interest in alternatives to traditional banking, cryptocurrency has become a lifeline for many Africans. Yet this growing reliance is unfolding against a backdrop of weak cybersecurity capacity, creating vulnerabilities that governments are struggling to contain.

“Fraud, hacking and illicit transfers are on the rise, targeting countries that lack adequate protection,” says Allan Juma, Cybersecurity Engineer at ESET Africa. “Anti-money laundering frameworks only work when supported by robust cybersecurity. Without secure systems for transaction monitoring, identity verification and platform integrity, even the strongest regulations can be bypassed.”

Africa already loses an estimated USD 88.6 billion annually to illicit financial flows, with crypto-related scams now forming a notable share. These losses drain public finances, create uncertainty for businesses and investors, and threaten the long-term stability of digital finance across the region.

Governments are beginning to respond. Countries such as Kenya and Ghana have recently enacted Virtual Asset Service Provider (VASP) laws that combine compliance requirements with mandatory security standards for crypto platforms. The goal is to close gaps exploited by cybercriminals and ensure that digital transactions become safer and more transparent.

“Africa has become a testing ground for financial cybersecurity,” Juma notes. “The challenges African countries are facing now are the same issues other emerging markets will confront as digital finance expands. The frameworks taking shape here—built on threat intelligence, secure infrastructure, and regulatory oversight—could become templates for securing digital economies in high-risk environments globally.”

But policymakers must strike a delicate balance. Excessively restrictive security rules could exclude millions who rely on crypto for financial access, while weak protections will fuel fraud that erodes trust in digital currencies. With over 350 million unbanked Africans, maintaining both accessibility and safety is an economic and social priority.

“The path forward lies in treating cybersecurity and compliance as complementary,” says Juma. “When strong encryption, multi-factor authentication, and resilient digital systems work alongside clear legislation, they create digital finance ecosystems that people can trust.”

Africa’s crypto future will depend not just on innovation, but on whether its digital infrastructure can keep pace with demand. As adoption accelerates, the continent’s ability to secure its financial systems may decide whether cryptocurrency becomes a transformative tool for inclusion—or a growing risk in an increasingly complex cyber landscape.