Africa is not a single market; the development of stablecoins needs to cleverly balance policy preferences and political risks across 54 different markets. Entrepreneurs must understand local regulations, build networks, and prioritize risk management to succeed. This article is based on a piece written by Adeola Adedewe, translated by Mars Finance, and organized and authored by Foresight News. (Background: The three stages of stablecoin evolution: What happens when decentralization is abandoned and it enters Wall Street?) (Context: The future trillion-dollar stablecoin factories, the era of blockchain production specialization) Africa is not a single market but is composed of 54 markets, each with different regulatory bodies, central bank strategies, and political realities. The quickest way to frustrate yourself is to start a presentation with a slide that simply says 'Africa,' as if it were a country, and then pitch a generic stablecoin story. The Kredete team has just concluded visits to 20 countries, engaging with over a hundred bankers, regulators, and policymakers. This is a realistic summary of the actual situation: what are myths, what are realities, and what conditions are needed to realize stablecoins. Key Points: Stablecoins in Africa are in a delicate balance between policy preferences and political risks. In some instances, they are viewed as pilot programs with a green light, while in others, any unauthorized appearance can force you to exit. Currently, only a few countries have operational Virtual Asset Service Provider (VASP) licensing systems, while several others are still in sandbox testing or draft legislation stages. Do not confuse consultation documents with licenses. Banks will act when relationships, regulatory assurances, and risk narratives align, not because you posted a LinkedIn update about 'launching business in Africa.' The fastest credibility check: Can your bank counterpart submit your proposal to the central bank and receive a prompt 'no objection' reply? If not, then you are wasting your efforts. Myths and Realities (from real cases) Myth 1: 'Africa needs our stablecoins.' Reality: Africa needs regulated foreign exchange trading channels, predictable settlements, and stringent KYC/AML processes. In some areas, bank-issued tokenized deposits are superior to public chain stablecoins at the institutional level. In others, fiat settlement APIs with appropriate reporting functions outperform any tokenized schemes. Users want funds that can flow and settle, not white papers. Myth 2: 'The African continent already has ten VASP licenses online: so let's act quickly.' Reality: The noise on the internet conflates draft laws, sandboxes, and formal licenses. In reality, very few regulatory systems are truly comprehensive and actively issuing licenses, and these licenses come with ongoing regulation. Announcements on LinkedIn do not equate to regulatory authorization. Myth 3: 'African banks are eager to collaborate with global cryptocurrency startups.' Reality: African banks are eager to retain their licenses. Leadership considerations include: Will this bring us a warning letter from the central bank? Will our correspondent bank raise tricky questions? Will this jeopardize foreign exchange regulations? If your answer is 'not yet,' then they will not take action, no matter how many slides you show about 'daily active users.' Myth 4: 'We can remotely control Africa from our co-working offices in Miami, Tel Aviv, or São Paulo.' Reality: This is a relationship-driven market. If you do not have local supporters who can take your team to meet with the director or at least the suitable department head, you will waste years in a 'soon to launch' status. Locals know who signs, who really makes decisions, and which weeks to avoid calling or when to fly over to establish relationships in person. North Africa: The intersection of currency regulations and the cryptocurrency craze North Africa is an excellent example where social media narratives starkly contrast with street realities. Dinars, dirhams, and pounds are strictly controlled currencies. These countries impose stringent foreign exchange regulations. This means that unauthorized capital flows, offshore accounts, or retail-level cryptocurrency trading can quickly violate currency laws. The practical situation is: Banks' risk committees view unauthorized cryptocurrency inflows as foreign exchange outflows. Even if you are pitching 'just stablecoins,' the legal basis is usually foreign exchange violations rather than regulations specific to cryptocurrencies. Enforcement is not just theoretical. If your actions are deemed to violate foreign exchange controls, penalties could include fines and imprisonment. This is the harsh reality behind the 'cryptocurrency adoption rate' charts. Moreover, regulatory trends and debates abound, including discussions about 'sandboxes' and recognition of the existence of digital asset trading, but this does not mean you can do as you please. The path of compliance must go through banks, authorized intermediaries, and rules set by the central bank. In summary: In jurisdictions with strict foreign exchange controls, your 'stablecoin growth cycle' may appear to be a means of circumventing currency regulations. Do not attend with a PPT that ignores this fact. Follow the laws as they are executed. Regulatory Overview (Field Experience) No specific company names will be mentioned here. It describes the situations and operational realities experienced or verified during meetings. Laws are evolving; regulatory bodies are also changing. But this provides founders and product teams with a practical mental model. 'Operational VASP systems are in effect' In these countries/regions, it is indeed possible to apply for, obtain, and accept specialized virtual asset systems (or functionally equivalent licensing pathways) regulations. Banks, auditors, and compliance teams can endorse this. South Africa: Crypto assets are regulated as financial products. The licensing system is in effect. Banks and market infrastructure are coordinating. Significant progress has been seen in policy dialogues, and regulatory capacity is real. Mauritius: A mature and offshore business-savvy regulatory body. VASP licenses truly exist, and compliance thresholds are high. Saying 'we obtained a license here' is indeed significant for banks. Seychelles: Although relevant laws were introduced later, there is now a practical licensing framework. Do not confuse the historical issues of foreign exchange trading in this country with the current compliance status: its regulatory system is rapidly maturing. Namibia: A specific virtual asset law has been enacted. Even though secondary regulations are still being formulated, this provides legal basis for banks and law firms. Botswana: Relevant legislation exists; the attitude is conservative but clear. There are practical paths for operators willing to comply. Gray area but progressing: Nigeria: The country’s central bank has re-allowed banks to provide services to Virtual Asset Service Providers (VASP) under clear rules, while the securities regulator is building a more comprehensive framework. In practice, agreements can be reached with suitable counterparties, but operators must strictly control their risk scope. 'Drafts, Sandboxes, and Signals' Kenya/Rwanda/Ghana: There are formal policy drafts, sandboxes, and consultation documents. These are not licenses. But if you wish to pilot under regulatory supervision with banks, collaborating with stakeholders at this time will be beneficial. Treat this stage like bidding: prepare relevant documents, AML manuals, and emergency response plans. 'Foreign Exchange First, Everything Else Second' North Africa and parts of the West/Central African corridor: Here, currency regulations reign supreme. Your best options are bank-led tokenization pilots, fiat settlements providing bank-level reporting, or partnerships with payment institutions under strict...