Cryptocurrency Regulation in Cameroon Prior to 2024

As we approach 2024, the legislative landscape for cryptocurrencies in Cameroon reflects a transition from an initial cautious stance to a more structured and regulatory approach. This shift indicates Cameroon’s evolving perspective on cryptocurrencies within the broader context of the Economic and Monetary Community of Central African States (CEMAC).

Initial Position and Regulatory Warnings

Initially, the integration of cryptocurrency in Cameroon, as a member of the CEMAC, was approached with caution. In October 2020, the Central African Financial Market Supervisory Commission (COSUMAF) issued a warning stating that activities related to cryptocurrency were not regulated within the CEMAC zone. The commission emphasized that engaging in cryptocurrency investments without a regulatory framework exposed individuals and entities to legal risks​

​Move Towards Regulation

This conservative position began to shift in 2021. During the CEMAC International Investors’ Week, held in October 2021, the President of the COSUMAF announced the preparation of new regulations for cryptocurrencies. These regulations were expected to be adopted by the ministerial committee of Central Africa by the end of 2021. This development signaled a significant move towards establishing a legal framework for the use and trade of cryptocurrencies in Cameroon and other CEMAC member states​

​Seminar on Cryptocurrency Challenges and Opportunities

Further reinforcing this move, the Ministry of Posts and Telecommunications (MINPOSTEL) of Cameroon conducted a seminar in Yaoundé to address the challenges, opportunities, and risks of cryptocurrency in the country. The seminar aimed to create a whitepaper on rules and regulations governing cryptocurrency and crypto assets in Cameroon. The discussions revolved around why regulation is necessary, mapping cryptocurrency actors in Africa and Cameroon, and reviewing mechanisms to regulate the sector. This seminar highlighted the need for a more detailed understanding of cryptocurrencies and for developing a regulatory framework that balances regulation with investment risks​

​Proposal for Extending Regulations to Cryptocurrency

The MINPOSTEL proposed extending existing regulations governing electronic money, such as Mobile Money and E-cash, to cryptocurrencies. This proposal included the adaptation of policies to integrate market changes, the use of tools to identify key determinants of consumer behavior, and the review of regulatory thresholds. The objective was to create a balanced regulatory environment that could foster the growth and secure operation of the cryptocurrency market in Cameroon​

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​Conclusion

In conclusion, prior to 2024, Cameroon’s legislative landscape for cryptocurrencies is characterized by a gradual shift from a non-regulated and cautious stance to a more structured approach towards establishing a regulatory framework. This evolving stance reflects an acknowledgment of the growing importance of digital currencies and the need for an appropriate regulatory environment to support their development and ensure their safe use within the country and the broader CEMAC region.