JOHANNESBURG — The rapid growth of cryptocurrency in Africa, now the world’s third-fastest-growing crypto market, has exposed the continent to significant cyber risks, according to a cybersecurity expert.
Between July 2024 and June 2025, Africa recorded $205 billion in on-chain transactions, driven by economic volatility and high demand for financial alternatives. This surge forces governments to balance harnessing crypto’s innovation potential with protecting citizens and businesses from escalating cyber threats.
“Fraud, hacking and illicit transfers are on the rise, targeting countries that lack adequate protection,” said Allan Juma, a cybersecurity engineer at ESET Africa. “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.”
Africa loses an estimated $88.6 billion annually to illegal financial flows, with crypto-related scams accounting for a growing share. Juma stressed that maintaining secure digital systems has become an economic imperative for African policymakers.
Governments are responding by adopting comprehensive frameworks that treat cybersecurity as an integral part of financial regulation. Juma highlighted countries like Kenya and Ghana, which have introduced Virtual Asset Service Provider (VASP) Acts that mandate security standards alongside compliance requirements for crypto platforms.
Juma suggested that Africa is serving as a “testing ground for financial cybersecurity,” facing challenges that other developing markets will increasingly encounter as they digitize rapidly. He believes the continent’s emerging cybersecurity frameworks could serve as blueprints for managing digital finance in high-risk environments globally.
“The path forward lies in viewing cybersecurity and compliance as complementary, not competing priorities,” Juma said. He argued that systems become resilient and trustworthy when strong encryption, multi-factor authentication and secure infrastructure align with clear legislative frameworks.
The continent’s millions of unbanked citizens stand to benefit significantly from financial inclusion offered by crypto, but this depends on establishing user trust in a secure system.
