Four countries in the Middle East and Africa region introduced separate regulatory frameworks for digital assets in the first quarter of 2026, a new FM analysis has found, placing the region alongside the EU’s MiCA system and Licensing efforts in the Asia-Pacific region In the global push to put cryptocurrencies under official supervision.
Singapore Summit: Meet the top APAC brokers you know (and those you don’t know yet!)
The four frameworks, covering Dubai, Kenya, South Africa and Nigeria, vary widely in maturity and approach, from a fully operational licensing system with 300 accredited companies in South Africa to a pilot program with six entities in Nigeria.
But taken together, they represent the broadest crypto regulatory acceleration in the Middle East and Africa region to date, according to FM Intelligence research.
Dubai sets the first rules guide for cryptocurrency derivatives in the region
Dubai’s Virtual Assets Regulatory Authority published version 2.1 of its exchange services rules on March 31, introducing a maximum retail leverage of 5:1 for cryptocurrency derivatives. The framework covers listed futures, perpetuals, and options across the 45 companies currently holding BE licencenearly double the number of 23 recorded in December 2024. Major licensees include Binance FZE, Crypto.com, OKX ME, Deribit, and Backpack.
The 5:1 cap falls between offshore exchanges that have historically offered leverage of up to 100:1 and the ESMA 2:1 cap applied to crypto CFDs in the EU. Enforcement has been running parallel: VARA issued penalty notices against 36 companies between August 2024 and August 2025, with fines ranging from about $13,600 to $163,000, the analysis noted.
Kenya’s capital thresholds trigger sharp decline in industry
Kenya’s 2026 draft VASP regulations, published on March 17, propose Ksh500 million ($3.86 million) in capital requirements for stablecoin issuers and descending thresholds for exchanges, wallet providers and investment advisers. The Virtual Assets Association of Kenya has warned that the limits could wipe out more than 90% of existing operators in the country.
The risks are high. According to Chainalysis data cited in the analysis, Kenya received $19 billion in cryptocurrency inflows between July 2024 and June 2025, ranking 21st on the Global Adoption Index, with over 6 million cryptocurrency users. Final regulations are expected to be issued between the second quarter and third quarter of 2026.
South Africa tops 300 licensed cryptocurrency companies
South Africa FSCA It has built what the analysis describes as the largest regulated cryptocurrency ecosystem in the developing world. Out of 512 applications received by the regulatory body 300 approved by December 2025With an approval rate of 59%, with 81 enforcement investigations opened into unlicensed operators. Penalties for operating without a license are up to 10 million South African rand (about $550,000) or 10 years in prison.
Two major compliance milestones were reached in early 2026: the OECD Crypto Asset Reporting Framework entered into force on March 1, and the Financial Intelligence Center confirmed the zero-threshold travel rule for cryptocurrency transfers. South Africa exited the FATF gray list in October 2025, with cryptocurrency regulation cited among the contributing reforms.
Fallerthe country’s largest cryptocurrency exchange, obtained a derivatives license in October 2025, becoming one of the first entities licensed for cryptocurrency derivatives under the Financial Markets Act.
Nigeria moves from ban to regulated participation
Central Bank of Nigeria It launched a pilot AML supervision platform on March 31, registering six entities including KuCoin, stablecoin issuer cNGN, and payment platforms Flutterwave and Paystack. The pilot requires monthly anti-money laundering performance indicators, governance reviews, and implementation plans for FATF travel rules, and follows Nigeria’s removal from the FATF gray list in October 2025.
This shift is notable given the country’s history. Central Bank of Nigeria Banks were ordered to close accounts related to cryptocurrencies In February 2021, a situation that has persisted for years. The country processed $92.1 billion in cryptocurrency transactions between July 2024 and June 2025, according to PwC data cited in the analysis, nearly three times the volume of South Africa.
What remains unresolved
State Department intelligence analysis indicates that cross-border recognition between the four jurisdictions has not been formalized, and that frameworks differ in readiness for implementation. The research warns that Kenya’s capital thresholds, if enacted as currently formulated, may produce a market dominated by foreign-capitalized operators rather than local companies, reflecting the framework’s stated goal of promoting local participation.
The full analysis, including detailed regulatory comparisons, maximum leverage standards, and compliance timelines, is available at FM Intelligence Data Lab.
Four countries in the Middle East and Africa region introduced separate regulatory frameworks for digital assets in the first quarter of 2026, a new FM analysis has found, placing the region alongside the EU’s MiCA system and Licensing efforts in the Asia-Pacific region In the global push to put cryptocurrencies under official supervision.
Singapore Summit: Meet the top APAC brokers you know (and those you don’t know yet!)
The four frameworks, covering Dubai, Kenya, South Africa and Nigeria, vary widely in maturity and approach, from a fully operational licensing system with 300 accredited companies in South Africa to a pilot program with six entities in Nigeria.
But taken together, they represent the broadest crypto regulatory acceleration in the Middle East and Africa region to date, according to FM Intelligence research.
Dubai sets the first rules guide for cryptocurrency derivatives in the region
Dubai’s Virtual Assets Regulatory Authority published version 2.1 of its exchange services rules on March 31, introducing a maximum retail leverage of 5:1 for cryptocurrency derivatives. The framework covers listed futures, perpetuals, and options across the 45 companies currently holding BE licencenearly double the number of 23 recorded in December 2024. Major licensees include Binance FZE, Crypto.com, OKX ME, Deribit, and Backpack.
The 5:1 cap falls between offshore exchanges that have historically offered leverage of up to 100:1 and the ESMA 2:1 cap applied to crypto CFDs in the EU. Enforcement has been running parallel: VARA issued penalty notices against 36 companies between August 2024 and August 2025, with fines ranging from about $13,600 to $163,000, the analysis noted.
Kenya’s capital thresholds trigger sharp decline in industry
Kenya’s 2026 draft VASP regulations, published on March 17, propose Ksh500 million ($3.86 million) in capital requirements for stablecoin issuers and descending thresholds for exchanges, wallet providers and investment advisers. The Virtual Assets Association of Kenya has warned that the limits could wipe out more than 90% of existing operators in the country.
The risks are high. According to Chainalysis data cited in the analysis, Kenya received $19 billion in cryptocurrency inflows between July 2024 and June 2025, ranking 21st on the Global Adoption Index, with over 6 million cryptocurrency users. Final regulations are expected to be issued between the second quarter and third quarter of 2026.
South Africa tops 300 licensed cryptocurrency companies
South Africa FSCA It has built what the analysis describes as the largest regulated cryptocurrency ecosystem in the developing world. Out of 512 applications received by the regulatory body 300 approved by December 2025With an approval rate of 59%, with 81 enforcement investigations opened into unlicensed operators. Penalties for operating without a license are up to 10 million South African rand (about $550,000) or 10 years in prison.
Two major compliance milestones were reached in early 2026: the OECD Crypto Asset Reporting Framework entered into force on March 1, and the Financial Intelligence Center confirmed the zero-threshold travel rule for cryptocurrency transfers. South Africa exited the FATF gray list in October 2025, with cryptocurrency regulation cited among the contributing reforms.
Fallerthe country’s largest cryptocurrency exchange, obtained a derivatives license in October 2025, becoming one of the first entities licensed for cryptocurrency derivatives under the Financial Markets Act.
Nigeria moves from ban to regulated participation
Central Bank of Nigeria It launched a pilot AML supervision platform on March 31, registering six entities including KuCoin, stablecoin issuer cNGN, and payment platforms Flutterwave and Paystack. The pilot requires monthly anti-money laundering performance indicators, governance reviews, and implementation plans for FATF travel rules, and follows Nigeria’s removal from the FATF gray list in October 2025.
This shift is notable given the country’s history. Central Bank of Nigeria Banks were ordered to close accounts related to cryptocurrencies In February 2021, a situation that has persisted for years. The country processed $92.1 billion in cryptocurrency transactions between July 2024 and June 2025, according to PwC data cited in the analysis, nearly three times the volume of South Africa.
What remains unresolved
State Department intelligence analysis indicates that cross-border recognition between the four jurisdictions has not been formalized, and that frameworks differ in readiness for implementation. The research warns that Kenya’s capital thresholds, if enacted as currently formulated, may produce a market dominated by foreign-capitalized operators rather than local companies, reflecting the framework’s stated goal of promoting local participation.
The full analysis, including detailed regulatory comparisons, maximum leverage standards, and compliance timelines, is available at FM Intelligence Data Lab.
