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South Africa’s crypto companies are being forced to migrate due to a lack of regulation

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5 years ago

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The biggest cryptocurrency fraud that took place in 2020 was a rude awakening for South Africa’s regulator and not everyone is waiting to see how it all plays out. As major financial hubs such as Singapore rewrite laws and regulations to entice crypto firms, and the United Kingdom government faces calls to start embracing virtual currencies, South Africa’s rapidly growing transactions say they are being forced to relocate their headquarters refers to speculation. About potential state regulation.

A lack of monitoring and restrictions on marketing to potential consumers are to blame for the dissatisfaction. Revix, a Cape-Town-based company that specializes in currency bundles, is relocating its headquarters to the United Kingdom and establishing a second site in Germany to support its expansion. Luno is Africa’s largest digital currency platform, with offices in London and Singapore.

In an interview, Sean Sanders who is a Revix Chief Executive Officer noted that South African regulators have been very sluggish in regards to regulation in the industry, and that leads to firms going overseas. In an unregulated environment, a consumer is entitled to be skeptical of their platform. With Elon Musks’ investing $1.5 billion and billionaire hedge-fund managers endorsing the currency, digital currencies are becoming increasingly popular on a daily basis. Bitcoin reached a high of more than $58,000 last month before reversing some of its gains, establishing itself as a hedge against inflation risk just as concerns about price pressures grow.

The recent year has been very important and challenging for the crypto-industry and the friendly regulatory framework in South Africa created a good environment for the companies to operate in the country. However, the lighter regulations resulted in troubles for not only brokerage companies that provide people with service, but for the crypto betting companies in South Africa who are now concerned about their activities as well. However, in a watershed moment for the sector, a suspected Ponzi scam in South Africa may have led investors to lose up to $1.2 billion in the world’s most renowned cryptocurrency.

Scam of the Year

Mirror Trading Holdings was put into contractionary territory and blockchain experts have since called it the world’s greatest crypto crime of the year. The company is said to have amassed over 23,000 bitcoin from investors, and its CEO is said to have gone to Brazil. Earle Loxton, CEO of Digital Currency Index, a company he founded with the help of former FirstRand Ltd. CEO Michael Jordaan stated that South Africa has a terrible history of pyramid and Ponzi scams, and crypto was the natural new structure for this. Regulation is welcomed by honest operations because it allows their clients to invest with trust, particularly at the organizational level.

South Africa may frustrate its entrepreneurs, but it is viewed as a forerunner in the industry in comparison to the rest of the continent since authorities and businesses are collaborating on suggestions. Plans to regulate the industry in Nigeria have been put on hold until operators create a bank account in the West African country. According to Brandon Topham, head of compliance at the Finance Sector in South Africa, the goal for South African authorities is to improve consumer rights rather than corporate security. In the next two months, he expects more offers.

Regulatory momentum

South Africa’s main banks have all endorsed regulatory attempts to establish a framework for crypto belongings, but their approaches to sector players are currently divided. Standard Bank Group Ltd has not prohibited crypto-asset businesses from all of the operations while FirstRnad’s first national bank has no financial connections with digital forex or dealers, according to emailed responses.

According to Sanders, South Africa’s crypto businesses find it difficult to remote on Facebook and Twitter since they are unregulated. As a result, their growth possibilities are hampered. The claims that the lack of policy has harmed South Africa’s revenue collection function, since relocating head offices necessitates paying tax in many nations.

According to Luno CEO Marius Reitz, the lack of a legislative framework had made it impossible for crypto platforms to maintain bank accounts. As a result, buyers will find it extremely difficult to purchase Bitcoin using their local fiat currency. There are indications that things are moving to the correct path. The regulator has issued draft regulations that would allow crypto assets to be classified as financial products. However, Sanders warns that doing so risks overlooking crypto’s novelty appeal.

South Africa appears to be going the other way as some of the more advanced market pioneers and innovators in this space. It appears that authorities are being laid by applying hundred-year-old securities laws to the innovative bitcoin asset class.

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NCDMB Signs Mgt Deal With Radisson, Edison…As Board’s 204 Rooms Hotel Open December 2026

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20 hours ago

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March 9, 2026

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The Nigerian Content Development and Monitoring Board (NCDMB), on Monday signed an international management agreement (IMA), with Radisson Hospitality, Belgium and Edison Hotel and Property Development Company with respect to the Board’s 204 rooms hotel and conference center, developed adjacent to the Content Tower, headquarters of the NCDMB in Yenagoa, the Bayelsa State.
A statement by the Board’s Directorate of Corporate Communications says the management agreement was signed in Durban, South Africa by the Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe, Executive Chairman of Edison Corporation, Mr. Vivian Reedy and Director of Radisson, Mr. Garnier Erwan.
Giving assent to the agreement, Ogbe affirmed that discussions, reviews, and compliance requirements have lasted for over two years, and that the Board secured the approval of all key stakeholders, including the Attorney?General of the Federation and Minister of Justice, Lateef Olasunkanmi Fagbemi, SAN.
“The support of stakeholders ensured that the Agreement meets Nigeria’s legal and regulatory standards.The aspiration of the NCDMB is to deliver a world?class hotel in Yenagoa, Bayelsa State with a fully equipped conference centre—designed to serve the oil and gas industry stakeholders and the Nigerian public”, he said.
He pledged the NCDMB’S commitment to completing the hotel on schedule time and achieving the opening in December, 2026.
“We appreciate our responsibilities—construction quality, pre?opening readiness, funding, safety and security compliance, and maintaining Radisson’s global standard. We will do our best to meet our obligations”, Ogbe added.
The Board’s Scribe charged the  Hospitality firm to bring its expertise, systems, and brand strength to deliver a hotel that offers excellent service and guest experience, expressing hope that the partnership with Edison Hotels will create a facility that reflects global quality and supports Bayelsa’s position as an oil and gas hub.
“This project reflects NCDMB’S commitment to using strategic investments to boost productivity, attract investment, build local content, and expand opportunities for business and tourism in Nigeria when completed.
“Radisson Hotel and Conference Center Yenagoa will stand not only as a hotel, but also as a symbol of what strong partnerships can achieve”, Ogbe noted.
In his remarks, Executive Chairman of Edison Corporation, Vivian Reedy described the organisation’s  role as a bridge between the owner and the operator, highlighting the group’s intensive experience in the hotel industry, and determination to ensure alignment, transparency, accountability and performance.
“We understand that a successful hotel is not just about buildings. It is about disciplined management, strong oversight, brand integrity, and a shared commitment to excellence.
“Part of our firm’s responsibility is to ensure that the hotel is delivered, operated, and managed in a manner that protects and announces the owner’s investment, while fully supporting Radisson in achieving operational excellence”, he said.
The Edison boss assured that working closely with Radisson and NCDMB’s team, the Radisson Hotel and Conference Center, Yenagoa will become the leading hospitality and conference destination in Bayelsa State, saying it is catalyst for business and investment, and a symbol of quality professionalism and international standards.
He emphasized that the firm has had wonderful successes with Radisson in other locations, even achieving 95% occupancies, noting that the company’s approach is to strengthen governance, support performance, and ensure the interests of the owners are always safeguarded.
“This project represents more than a hotel. It represents a partnership, a trust, and a long-term vision for sustainable value creation. We thank Radisson for its global expertise and operational excellence.
“Edison is fully committed to ensuring that the asset performs strongly, operates efficiently, and delivers lasting value to its owner”, the firm said.
In his speech, the Attorney-General of the Federation Chief Lateef Fagbemi, SAN, representative by Mr. Wada Ahmed Wada described the signing ceremony as historic and wished the parties success in their business relationship.
By Ariwera Ibibo-Howells, Yenagoa
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FG engages foreign investors at PEBEC Roundtable on business environment reforms

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20 hours ago

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March 9, 2026

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Senior government officials and foreign investors operating in Nigeria met in Abuja on Thursday as the Presidential Enabling Business Environment Council (PEBEC) convened the Third Existing Foreign Direct Investors (FDI) Roundtable to address challenges affecting the country’s investment climate.
The high-level engagement, held at the Banquet Hall of the Presidential Villa, brought together top policymakers and representatives of foreign companies for discussions aimed at improving Nigeria’s business environment and strengthening investor confidence.
The roundtable forms part of PEBEC’s efforts to deepen collaboration between government institutions and the private sector while ensuring that ongoing reforms translate into tangible improvements for investors already operating in the country.
Opening the session, Senator Ibrahim Hadejia, Deputy Chief of Staff to the President, welcomed participants on behalf of the Vice President and Chairman of PEBEC, reiterating the Federal Government’s commitment to maintaining a stable and transparent business environment that supports investment and economic growth.
In her remarks, the Director-General of PEBEC, Princess Zahrah Mustapha Audu, said the council remains committed to sustained engagement with investors and coordinated implementation of reforms across government agencies.
She noted that existing foreign investors play a critical role in Nigeria’s economic development through job creation, capital investment, technology transfer, and supply chain development.
According to her, PEBEC’s engagement strategy prioritises listening to investors already operating in the country in order to identify and address operational challenges affecting their businesses.
The roundtable featured presentations and interactive discussions with senior government officials responsible for regulatory and policy frameworks affecting investors.
Among them were the Executive Chairman of the Nigeria Revenue Service, Dr. Zacch Adedeji; the Comptroller-General of the Nigeria Customs Service, Bashir Adewale Adeniyi; and the Inspector-General of Police, IGP Olutunji Rilwan Disu.
Also participating virtually was Mr. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms and Minister of State for Finance-designate, who spoke on ongoing fiscal and tax reform initiatives aimed at improving tax certainty and strengthening revenue administration.
During the discussions, investors raised technical questions and shared insights on issues relating to security, tax administration, customs procedures and fiscal policy reforms.
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MAN warns against illegal recycling of File photo

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20 hours ago

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March 9, 2026

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The Manufacturers Association of Nigeria has warned against the illegal destruction and recycling of returnable packaging materials belonging to beverage companies, following a recent police crackdown on illegal factories in Anambra State.
Earlier in February, the Nigeria Police Force, working with beverage manufacturers, reportedly raided several illegal facilities in Onitsha and surrounding areas, where individuals allegedly destroyed returnable glass bottles and plastic crates belonging to beverage companies.
In a statement on Friday, the Director-General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, condemned the destruction of these packaging materials as unauthorised and economic sabotage against businesses, and hailed the efforts of the police and regulatory agencies.
“The recent raid is the outcome of sustained engagements and intelligence-led investigations and represents a decisive step by authorities to protect legitimate business operations, uphold environmental standards, and deter further illegal activity,” Ajayi-Kadir said.
The MAN DG described the practice “as criminal and a serious economic sabotage… as assets remain the property of beverage companies that have invested heavily in these sustainable packaging materials to protect the environment”.
According to a Vanguard News report, the Executive Secretary of the Beer Sectoral Group of the Manufacturers Association of Nigeria, Abiola Laseinde, commenting on the February crackdown on alleged factories in Anambra, stated that, “The recent raid is the outcome of sustained engagements and intelligence-led investigations… a decisive step by authorities to protect legitimate business operations, uphold environmental standards and deter further illegal activity.”
Ajayi-Kadir confirmed the earlier news reports, affirming that the police acted on credible intelligence to dismantle illegal operations involving the theft, destruction, and unauthorised recycling of companies’ returnable packaging materials.
He stated that the association received reports from member companies that some factories were destroying company-owned bottles and crates for resale as raw materials, resulting in businesses losing millions of naira in investments.
“The police, working with member companies, acted on credible intelligence and stormed the factories to crack down on illegal disposal, theft, and unauthorised recycling of the returnable packaging materials of the affected companies, notably returnable glass bottles and plastic crates,” Ajayi-Kadir said.
Ajayi-Kadir added that investigations revealed that large quantities of bottles and crates were diverted from legitimate channels into informal recycling networks across the South-East.
“Member companies identified multiple illegal locations in the South-East where they crush our bottles and crates for resale as raw materials, while police investigations showed that significant quantities were being diverted from legitimate channels into informal recycling networks,” MAN’s DG said.
He noted that in several cases, reusable bottles were deliberately broken and plastic crates shredded and sold as raw materials, thereby undermining beverage companies’ circular packaging model.
He remarked, “These Returnable Packaging Materials are company-owned assets designed for multiple reuse cycles and form a critical part of their sustainability, cost-efficiency, and product quality systems. It’s a criminal activity to destroy them.”
Meanwhile, Ajayi-Kadir warned those involved in the illegal practice to desist, stressing that the association would continue to collaborate with law enforcement agencies to ensure offenders face the full weight of the law.
He added that beyond the direct loss of assets, the activities disrupt supply chains, raise operational costs and pose environmental and safety risks due to unsafe recycling practices.
MAN urged relevant government agencies to intensify efforts against the illegal diversion and destruction of returnable packaging materials outside the beverage industry’s value chain.
MAN’s DG also called on members of the public to report suspicious activities to the police or to the consumer care lines of beverage companies.
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