The 2020 and 3rd global cryptoasset benchmarking study by Cambridge University is out and provides great insights into crypto use across the globe.
The report indicates that there are now over 101 million unique users of cryptoassets globally by the Q3 2020.
Among the users, the report indicates that while North America and European firms primarily serve cryptoasset hedge funds and traditional institutional investors, Middle Eastern and African service providers cater to non-retail clients with a focus on online merchants who make up 50% of their clientele.
Below is a detailed breakdown of the stats from the report as it relates to Africa:
Crypto service providers focus on online merchants who make up 50% of the clientele base
Less than 1 out of 3 companies operating in the region hold a license or registration
Only 1 out of 2 crypto accounts in the region have been KYC’ed – the lowest globally
Sudan is among the top 8 most restricted locations by crypto exchanges globally
The region accounts for the highest percentage in a lack of external audits globally at 31%
Small exchanges dominate the region with 47% of transacted volumes directed to external wallets
40% of exchange volumes in the region have an internal order book vs 83% in Asia
The majority of firms in the region are less than two years old
The region holds the highest operational risk globally for increasing regulatory buden
The region holds the lowest operational risk for negative industry publicity globally
The region holds the highest operational risk due to difficulty of entering into banking relationships globally
The region holds the highest operational risk due to deteriorating banking relationships globally
The region holds the highest risk for miners globally due to unfavorable global regulation related to cryptoassets mining
The region holds the highest risk for criminal use of crypto assets globally
The region holds the highest risk for the emergence of Central Bank Digital Currencies (CBDCs) for miners globally – Over half vs the rest of the world
The region holds the highest risk for miners globally for having too many cryptoassets in the market
The region holds the highest risk for cryptoassets at 52% due to lack of insurance cover
The region holds second-highest sentiments on future developments for stablecoins after North America
The region holds the lowest sentiment on future developments for non-fungible tokens (ERC tokens) globally
Middle East and Africa account for only 4% of the Bitcoin hashpower
The region holds the highest operational risks for miners globally for halving, planned and unplanned protocol changes
The region accounts for the largest fiat-to-fiat transactions via crypto at 25%
The region accounts for the second-largest domestic payment transaction volumes after South America
The region accounts for the second-largest cross-border payment transaction volumes after South America
Retailers in the region make up 75% of the crypto assets customer base
Businesses and institutional clients make up 20% of crypto assets customer base in the region
In-house compliance teams make up 8% of company costs in the region vs 8% global average
The region accounts for 38% of independent crypto-asset reserves audits – the lowest globally
The report findings also suggest that the industry has entered a growth stage with regulatory dialogue supporting its growth by providing clarity and harmonization on the treatmnt of cryptoassets and related activities.