The Collapse of FTX and Its Lessons for the Region
The bankruptcy of FTX in November 2022 caused a global crisis of confidence in centralized crypto-asset exchanges. In the East Africa / Indian Ocean region, where many users had discovered cryptocurrencies through centralized platforms (Binance, FTX, Kucoin), the episode accelerated a shift toward self-custody and decentralized protocols (DeFi).
Paradoxically, while the 2022-2023 bear market reduced speculation, it clarified the real-value use cases: international remittances, access to financial services for the unbanked, and tokenization of real-world assets.
Remittances: The Most Mature Use Case
Sub-Saharan Africa and the Indian Ocean are among the regions most dependent on remittances (diaspora fund transfers). According to the World Bank, average transfer fees to Sub-Saharan Africa were 7.8% of the amount transferred in 2022, far from the SDG target of 3%. Blockchain solutions like Stellar (used by Western Union and MoneyGram) or M-Pesa + Ethereum offer fees below 1% with settlement times of just a few seconds.
In Mauritius, the diaspora is estimated at 200,000 people in Europe and Australia. The annual volume of remittances exceeds 200 million dollars, a growing fraction of which already flows through blockchain rails.
Financial Inclusion: Millions of Unbanked People to Reach
In Madagascar, the Comoros, and certain rural areas of Tanzania and Kenya, over 60% of the adult population does not have access to a bank account. Blockchain wallets (Valora on Celo, MPesa + DeFi) provide access to basic financial services (savings, loans, parametric insurance) via a simple mobile phone, without requiring traditional banking KYC.
Projects like Celo (a mobile-optimized network) or Kotani Pay (Kenya) demonstrate the viability of these models at the scale of millions of users.
Land Tokenization: A Major Issue for the Region
In countries where land registries are incomplete, contested, or corrupt (Madagascar, Comoros, certain regions of East Africa), blockchain offers a solution to secure property titles. Pilots conducted in Tanzania (with UN-Habitat support) and Madagascar (through NGO partnerships) have demonstrated technical feasibility, but legal and political obstacles remain considerable.
The Regional Regulatory Framework in 2023
Mauritius has distinguished itself as the most advanced regulatory hub in the region with the Virtual Asset and Initial Token Offering Services Act (VAITOS Act) of 2021, which governs exchanges and virtual asset service providers. The Financial Services Commission (FSC) issued its first VASP operator licenses in 2022-2023, attracting several regional players.
The Kenya Crypto Regulatory Framework (under consultation in 2023) and the work of the Central Bank of Madagascar on CBDCs reflect a positive regional dynamic, even though harmonization of frameworks remains a distant goal.