Sumsub’s report highlights key challenges faced by African crypto industry in 2025 and beyond
As the African crypto-currency industry navigates a pivotal period of growth, crypto providers will have to address three critical challenges, including security threats, technology capabilities, and regulation, in order for the industry to succeed in 2025, says a new State of the Crypto Industry 2025 report.
The Sumsub’s newly released report, which provides an in-depth analysis of the trends and obstacles shaping Africa’s rapidly evolving cryptocurrency landscape, highlights fraud as a key issue, with document forgery, phishing, and money mulling identified as the top fraud types globally. In Africa, fraud rates surged by 48% over the past year, with Nigeria recording the highest rate at 8.3% of all cases and showed a 75% average pass rate; the lowest among its regional African peers. These frauds are facilitated by sophisticated methods, including AI-powered document forging and biometric fraud. The rise of these advanced tactics, including deepfakes and identity theft, underscores the need for crypto providers to implement robust security measures.
To address these issues, the report stresses the importance of integrating innovative technologies such as AI-driven biometric checks and document-free verification systems. These advancements have led to a 46% reduction in verification times, boosting the efficiency of onboarding processes. As a result, the customer onboarding success rate has increased to 93.39%, while reducing drop-off cases. Regulation is another key theme, with the report noting that many African countries are tightening crypto regulations. In South Africa, for example, crypto platforms will have to comply with the upcoming travel rule and the regulations set by the Anti-Money Laundering and Combating Terrorism Financing Amendment Bill by 2025. As demand for crypto rises across the continent, the report concludes that companies must balance growth with heightened vigilance towards fraud and regulatory adherence to thrive in 2025 and beyond.