Banking Restrictions and Crypto Access in Restricted African Nations: What You Need to Know in 2025

1 May 2025

Across Africa, millions of people use cryptocurrency not because it’s trendy, but because it’s often the only way to send money, save value, or pay for goods when banks won’t help. In countries like Nigeria, Cameroon, and Tanzania, you can own Bitcoin or Ethereum - but if you try to link it to your bank account, you risk having your account shut down. This isn’t about technology. It’s about control. And it’s forcing people to find creative, risky, and expensive ways to move money.

Why Banks Are Blocking Crypto

The Central Bank of Nigeria (CBN) has been clear since 2021: no bank can touch cryptocurrency. If you run a crypto exchange or even just trade crypto regularly, your bank must close your account. The reason? Fear. The CBN says crypto is anonymous, unregulated, and dangerous - a tool for money laundering and fraud. But here’s the catch: cash is anonymous too. And Nigeria’s banks still handle billions in cash transactions every day without shutting down every customer who walks in with a suitcase of naira.

The real issue isn’t anonymity. It’s loss of control. When people use crypto, they bypass the banking system entirely. No more waiting days for a wire transfer. No more paying 10% fees to send money to family in another country. No more being denied a loan because you don’t have a formal salary slip. Crypto lets people move money on their own terms. And that scares institutions built on gatekeeping.

In Cameroon, the problem is even more layered. The country follows rules set by COBAC, the regional banking body for Central Africa. COBAC doesn’t say crypto is illegal - but it bans banks from touching it. So you can hold Bitcoin in your wallet, but you can’t use your bank to buy it, sell it, or pay for goods with it. That forces people into cash deals or peer-to-peer trades with strangers - often at inflated prices. For small businesses importing goods from China or exporting coffee to Europe, this adds weeks of delays and hundreds of dollars in hidden costs.

South Africa: The Exception That Proves the Rule

While most of Africa is pushing crypto away, South Africa is building roads for it. In 2023, the Financial Sector Conduct Authority (FSCA) made crypto assets official financial products. That means any crypto exchange operating in South Africa must register, verify users, track every transaction over ZAR 25,000 (about $1,500), and report suspicious activity. It’s not free or easy - but it’s legal.

This isn’t just about rules. It’s about trust. South African users can now use apps like Luno or VALR without fear their bank will freeze them. Businesses accept crypto payments. Investors trade tokens through licensed platforms. And because the government requires identity checks and transaction logs, the risk of fraud drops. The FSCA doesn’t want to ban crypto - it wants to own it. And that’s made South Africa the most stable crypto market on the continent.

The difference? South Africa has a strong financial system. Its banks aren’t terrified of crypto - they’re adapting to it. Other African nations don’t have that luxury. Their banking systems are fragile. Their regulators are under-resourced. And their governments are scared of losing control over money flows.

The Paradox of Legal But Forbidden

Tanzania’s approach is confusing even to locals. The Bank of Tanzania doesn’t ban crypto. It just says: "Don’t use it. The shilling is the only real money." That’s not a law. It’s a warning. But in practice, it works like a ban. Banks ignore crypto transactions. ATMs won’t let you deposit crypto earnings. Payroll systems won’t accept Bitcoin as payment. So even though it’s "legal," it’s practically unusable.

This gray zone is dangerous. People don’t know where they stand. A trader in Dar es Salaam might sell crypto to a buyer who pays in cash - but if that buyer is later linked to a scam, the seller could be dragged into an investigation. There’s no clear legal protection. No official guidance. Just silence.

The same is true in Kenya and Zambia. In mid-2025, both countries released draft crypto laws. But until those laws pass, banks remain cautious. Many still freeze accounts tied to crypto wallets. Exchanges operate in limbo. Users are caught in the middle - using crypto because they have to, but never feeling safe doing it.

What People Are Doing Anyway

Despite the bans, crypto usage in Africa is growing. Nigeria is one of the top five countries in the world for peer-to-peer (P2P) crypto trading. In Lagos, you’ll find traders meeting in coffee shops to swap cash for Bitcoin. In Accra, WhatsApp groups connect buyers and sellers. In Kinshasa, people use crypto to pay for phone credit, airtime, and even groceries.

The tools are simple: apps like Paxful, Binance P2P, or LocalBitcoins. No bank needed. Just a phone, a stable internet connection, and a willingness to meet strangers. But it’s risky. Scams are common. Payments can be reversed. And if you get caught trading too much, your bank might shut you down anyway.

Some users turn to international exchanges that don’t require local bank links. But those platforms often block Nigerian or Cameroonian IP addresses. So people use VPNs - which is technically against bank rules. Now they’re breaking two rules at once: using crypto and hiding their location.

Why This Matters Beyond Crypto

This isn’t just about digital money. It’s about financial freedom. In many African countries, over 60% of adults are unbanked or underbanked. They don’t have savings accounts. They can’t get credit. They can’t pay bills online. Crypto offers a workaround - a way to store value, send money, and participate in the global economy without asking permission.

But when banks block crypto, they’re not protecting the system. They’re locking people out. They’re forcing them into informal, unsafe, and expensive alternatives. A mother in Abuja sending money to her sister in Kano might pay 15% in fees through a traditional money transfer service. With crypto, she pays 2%. But if her bank finds out, she loses access to her entire account - including her salary and emergency funds.

The result? Trust in banks is crumbling. Young people are turning to crypto not as an investment - but as a survival tool. And governments are waking up to that reality.

What’s Changing in 2025

The tide is turning - slowly. The Central African Republic tried Bitcoin as legal tender in 2022 and dropped it in 2023 after pressure from the IMF and falling oil prices. That showed how fragile crypto adoption can be when it’s tied to politics, not infrastructure.

But other countries are learning from that mistake. Kenya invited Yellow Card, a local crypto firm, to help write its new crypto law. Rwanda’s central bank is holding public consultations. Morocco, which banned crypto since 2017, now says it will have a full regulatory framework by the end of 2025.

The message is clear: outright bans don’t work. People will find a way. The smarter move is to regulate - to bring crypto into the light, require identity checks, track flows, and protect users. South Africa’s model proves it’s possible.

The question isn’t whether crypto will survive in Africa. It’s whether governments will choose to control it - or be controlled by its absence.

What You Can Do If You’re Affected

If you live in a country with crypto restrictions:

• Know your rights. In most places, owning crypto isn’t illegal - using banks to trade it is.
• Use P2P platforms with verified traders. Avoid cash deals unless you’re certain of the person.
• Keep records. If you’re ever questioned, proof of transactions and wallet addresses can help.
• Don’t use your main bank account for crypto. Use a separate one, if possible.
• Stay updated. Laws change fast. Follow official central bank announcements, not social media rumors.

What’s Next for Africa

Africa won’t become a crypto paradise overnight. But it also won’t go back to the old system. The demand is too strong. The technology is too accessible. And the cost of doing nothing is too high.

The next five years will see more countries adopt clear, balanced rules - not bans. More banks will offer crypto-friendly services. More startups will build tools to help users comply with the law. And more people will gain real financial power - not because a government gave it to them, but because they refused to wait for permission.

The future of money in Africa isn’t about replacing the bank. It’s about giving people a choice.