Cryptocurrency in Africa has evolved rapidly from a fringe financial activity into a major economic force - and cybercriminals are taking notice. Between July 2024 and June 2025, the continent recorded USD $205-billion in on-chain transactions, making it the world's third-fastest-growing crypto market. Driven by economic volatility and a growing demand for alternatives to traditional banking, this surge presents governments with a critical challenge: harnessing cryptocurrency’s potential for innovation, while protecting businesses and citizens from rising cyber threats.

"Fraud, hacking and illicit transfers are on the rise, targeting countries that lack adequate protection. Authorities are responding by strengthening anti-money laundering frameworks, but these only work when underpinned by robust cybersecurity practices. Without secure systems for transaction monitoring, identity verification, and platform integrity, even the strongest regulations can’t prevent criminals from exploiting vulnerabilities to conceal stolen assets," says Allan Juma, Cybersecurity Engineer at ESET Africa.

Africa loses an estimated USD $88.6-billion every year to illegal financial flows, with crypto-related scams accounting for a growing share. Fraud of this nature drains resources, slows public investment, and limits opportunities for businesses and entrepreneurs, directly affecting the continent’s economic growth. For African policymakers, maintaining secure digital systems is no longer just a regulatory requirement - it’s become an economic imperative.

“Governments are now responding with comprehensive frameworks that recognize cybersecurity as integral to financial regulation,” says Juma. This approach is already taking shape in countries like Kenya and Ghana, which have recently introduced Virtual Asset Service Provider (VASP) Acts that combine mandatory security standards with compliance requirements for crypto platforms. By addressing the vulnerabilities that cybercriminals exploit, these measures aim to make digital transactions safer, more traceable, and fully transparent.

"Africa has become a testing ground for financial cybersecurity," says Juma. "The continent faces challenges that other developing markets will increasingly encounter, as governments work to secure rapidly digitizing financial systems while maintaining accessibility. The cybersecurity frameworks emerging from Africa - combining threat intelligence, platform strengthening, and regulatory oversight - could serve as blueprints for managing digital finance in high-risk environments globally.”

With millions of Africans still unbanked, cryptocurrency offers a vital pathway to financial inclusion – but only if users can trust the system. This creates a delicate balance: overly restrictive security measures risk excluding those who need alternatives most, while inadequate protections invite fraud that undermines confidence in digital finance entirely.

“The path forward lies in viewing cybersecurity and compliance as complementary, not competing priorities,” says Juma. “When strong encryption, multi-factor authentication, and secure infrastructure align with clear legislative frameworks, they form systems that are both resilient and trustworthy.”