DIGITAL CURRENCY/CRYPTOCURRENCY IN CAMEROON
As a member of the CEMAC (Economic and Monetary Community of the Central African Region), the integration of cryptocurrency was timid at first.
COSUMAF’s Warning: Unregulated Cryptocurrency Activities
In fact, the Central African Financial Market Supervisory Commission (COSUMAF) on 23 October 2020 published a press release warning the population that the activities around cryptocurrency are not subject to a regulatory framework in the CEMAC zone and that any person or entity engaging in the canvassing of the public with a view to making investments would be exposed to legal proceedings.
The position of the regulator was drastic until recently when during the second day of the “CEMAC International Investors’ Week” which took place from 12 to 15 October 2021 in Douala, the President of the COSUMAF announced that a new regulation was being prepared and that such regulation shall be adopted by the ministerial committee of Central Africa by the end of 2021.
On the same note, the Ministry of Posts and Telecommunications (MINPOSTEL) of Cameroon recently published the summary of the seminar held in Yaoundé on “The challenges, opportunities and risks of crypto-currency in Cameroon.” This document formulates the proposals synthesised by the MINPOSTEL in order to frame the use of this virtual currency in Cameroon. At the end of this seminar, it was requested to extend the regulations that already govern electronic money (Mobile Money, E-cash…) to cryptocurrency; to review and adapt policies to fully integrate changes in the market; to use other tools to identify key determinants of consumer switching behaviour; and to review ex-ante regulatory thresholds to ensure a balance between regulation and investment risks.
Thus, it is on the basis of this new text that the regulator (COSUMAF) will grant authorizations for this activity in each Member State of the CEMAC zone, notably in Cameroon, while ensuring its proper functioning. The new regulation will also be able to intensify the trade of cryptocurrencies in Cameroon as well as in the other countries of the sub-region.
Article by CHUO ANGABUA JUNIOR
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