How trust and compliance will transform Africa's crypto future

As cryptocurrency adoption accelerates across Africa, the excitement around the technology and its transformative potential is palpable. But alongside this rapid growth comes a critical challenge: ensuring that innovation does not outpace regulation. This balance is not just important — it is essential. Without it, the promise of crypto to revolutionise financial inclusion and economic participation risks being undermined by misuse, fraud, and illicit activity.

According to Chainalysis, illicit cryptocurrency addresses received over $40.9 billion globally in 2024. This figure is staggering and underscores the urgency of addressing the risks inherent in a fast-growing sector. In Africa, where many financial systems are still developing, the stakes are even higher. The question I am often asked is: how can we build trust in crypto while fostering an environment where innovation thrives?

In my view, trust and compliance are the foundation on which sustainable innovation is built. Having worked as a federal prosecutor and as Global Head of Financial Crimes at Morgan Stanley before joining Binance, I have seen firsthand how financial systems can be compromised when compliance is treated as an afterthought. The crypto industry is at a pivotal moment, especially in markets like Africa, where the right approach to regulation will determine the sector’s long-term success or failure.

Compliance is not the enemy of innovation — it is its enabler

The narrative that regulation stifles innovation is outdated. I believe the opposite is true: compliance frameworks provide the structure and accountability that allow new technologies to flourish responsibly. For Africa, this is a unique opportunity. The continent can leapfrog traditional banking systems and build digital financial ecosystems that are secure, inclusive, and transparent, but only if strong regulatory foundations are laid from the outset.

At Binance, we approach compliance with a clear purpose: it is not a box to check, but a living framework that supports growth. We work closely with regulators, law enforcement, and industry stakeholders across Africa to demystify crypto and build capacity. I’ve personally engaged with multiple governments and regulatory bodies to help establish policies that reflect the realities of digital assets without hindering innovation.

This partnership model is vital. Regulators in Africa are asking the right questions and deserve genuine collaboration rather than one-sided mandates. We see our role as facilitators — supporting the development of frameworks that protect users, enable market integrity, and foster confidence.

Tailoring compliance to local contexts

One of the biggest mistakes a global crypto firm can make is to apply a one-size-fits-all approach to compliance. Africa is not a monolith; each country has unique legal systems, cultural dynamics, and enforcement challenges. To be effective, compliance strategies must be localised, respectful of these differences, and agile enough to adapt as frameworks evolve.

Under my leadership, Binance has prioritised building Africa-based compliance teams. These teams serve as a bridge between global standards and local realities, ensuring that policies are implemented thoughtfully. For example, our Know Your Customer (KYC) protocols incorporate biometric verification and AI-driven risk models tailored specifically to local usage patterns, reducing friction while enhancing security.

We’ve also invested heavily in technology, partnering with leading compliance solution providers to deploy advanced risk detection systems. These systems enable real-time transaction monitoring and alerts for suspicious activity, which is critical for proactively preventing financial crime without disrupting legitimate user activity.

Building capacity and trust through education and collaboration

Beyond technology and policy, capacity building is a cornerstone of our strategy. We conduct workshops and training sessions for police units, financial intelligence units, and regulatory bodies across Africa to improve understanding of crypto’s risks and opportunities. This collaboration leads to more effective enforcement and fosters a shared commitment to protecting users.

Transparency is also key. Binance regularly undergoes third-party audits and risk reviews to ensure our compliance measures align with international anti-financial crime standards. In 2023 alone, we processed over 2.6 million off-chain alerts, filed more than 51,000 Suspicious Activity Reports, and responded to over 58,000 law enforcement requests. These numbers reflect the seriousness with which we treat compliance and the scale of the challenge.

A vision for Africa’s crypto future

I am optimistic about crypto’s future in Africa — but only if we act responsibly. The potential to drive financial inclusion is immense. Many Africans remain underserved by traditional banking systems, and digital assets can provide new pathways to savings, payments, credit, and investment.

However, this potential will only be realised if users trust the ecosystem. That trust is built on a foundation of transparency, strong compliance, and ethical leadership. As the sector matures, I believe the companies that embed these values into their operations will lead the way.

Our vision at Binance is to create a digital asset ecosystem in Africa that is as secure as it is innovative. This means ongoing investment in compliance infrastructure, open dialogue with regulators, and a commitment to user education. It also means recognising that compliance is a journey, not a destination. The regulatory environment will continue to evolve, and so must our approaches.

The conversation around cryptocurrency in Africa is changing. We are moving past the hype to a more nuanced understanding of what it takes to build a sustainable industry. I hope that by sharing my perspective and experience, we can inspire a broader commitment to responsible innovation, one that balances opportunity with protection.

Africa stands at a crossroads, with the chance to lead in the digital financial revolution. But leadership requires more than technology. It requires integrity, partnership, and a steadfast commitment to doing what’s right for users and regulators alike. That is the future I believe in, and the future we are working to build at Binance.

* Perlman is the chief compliance officer at Binance.

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