Looking ahead, Subramoney argues that the defining question for policymakers, regulators, banks, and digital asset providers is whether future regulation will encourage activity within the regulated financial system or push it into informal markets.
Africa’s digital asset ecosystem is approaching a pivotal moment, with regulators across the continent facing a common challenge: developing regulatory frameworks that encourage innovation while keeping digital asset activity within supervised financial systems, according to Chanal Tanya Subramoney, Group Senior Compliance Manager at Yellow Card . Drawing on discussions at several major industry events, including Swift Connect Africa, the Zimbabwe Securities and Exchange Commission, FinTech Summit Africa, and the UABA Virtual Roundtable, she argues that the next year will be critical in shaping the future of digital money across the continent.
Subramoney identifies three overarching themes emerging from these engagements. The first is that the challenges facing digital assets are no longer theoretical but operational. Regulators and industry players are grappling with issues such as fragmented regulatory frameworks, inconsistent legal interpretations, cross-border compliance challenges, and the growing use of stablecoins outside formal financial systems. She notes that while mobile money has expanded to nearly a billion wallets across Africa and stablecoin adoption continues to grow rapidly, the key question is whether this activity will remain within regulated channels or migrate to less transparent alternatives.
Among the operational challenges highlighted are uneven supervisory frameworks across African countries, legal uncertainty surrounding the classification of digital assets, fragmented regulations across the continent’s 54 jurisdictions, limited interoperability for compliance with the Financial Action Task Force (FATF) Travel Rule, and the risk that excessive regulation could drive users toward peer-to-peer and offshore platforms beyond regulatory oversight. According to Subramoney, these issues increase compliance costs while reducing regulators’ visibility into financial activity.
Despite these challenges, she believes solutions are already emerging. Compliance-by-design models, automated on-chain governance, regulated local-currency stablecoins, tokenised bank deposits, tokenised real-world assets, and greater interoperability between mobile money platforms and stablecoins are all being developed across Africa. She points to initiatives such as Nigeria’s regulated cNGN stablecoin, South Africa’s rand-backed stablecoins, Project Khokha 2, and Zimbabwe’s growing interest in tokenised capital markets as examples of innovation that can strengthen financial inclusion while maintaining regulatory oversight. She argues that combining mobile money, licensed stablecoin infrastructure, wholesale central bank digital currencies (CBDCs), and tokenised deposits offers the most comprehensive path to expanding financial inclusion.
The third major theme is the growing call for regulatory harmonisation rather than deregulation. Subramoney says industry stakeholders are seeking proportionate, coordinated frameworks that enable businesses to operate across borders while maintaining robust consumer protection and anti-money laundering standards. She proposes a model in which regional economic blocs align their regulatory approaches, the African Union establishes continent-wide minimum standards, and countries adopt mutual recognition of digital asset licences, reducing duplication and compliance costs for operators.
She also advocates for stronger collaboration between regulators and industry through structured engagement forums, as well as reporting-led regulatory models that distinguish between different types of digital assets, provide transition periods for compliance, and offer safe harbour provisions for compliant operators. According to her, these measures would expand the supervisory perimeter rather than constrain innovation.
Looking ahead, Subramoney argues that the defining question for policymakers, regulators, banks, and digital asset providers is whether future regulation will encourage activity within the regulated financial system or push it into informal markets. She concludes that Africa has an opportunity to become a global leader in digital money if governments adopt harmonised, risk-based regulatory frameworks that balance innovation with effective supervision. With industry engagement increasing and regulatory discussions advancing across the continent, she believes the foundations for a competitive and trusted digital asset ecosystem are already taking shape.
