The Cameroon Ministry of Finance has blamed a lack of clear and definitive guidance on digital tokens and assets, from the Central African Financial Market Supervisory Commission (COSUMAF), for creating an uncertain regulatory environment.
🇨🇲CAMEROON has approximately 900,000 cryptocurrency users to date – 6.76% of the
active population. #FrancophoneAfrica #CryptoinAfrica pic.twitter.com/xP5dkwqXlF— BitKE (@BitcoinKE) September 21, 2023
In a new study on cryptocurrency and ponzi schemes, the ministry noted the rampant presence of ponzi schemes within the Cameroonian crypto space.
“Additionally, numerous companies are thriving in offering cryptocurrencies and investment products, some of which follow the PONZI scheme pattern in Cameroon,” the report says.
“In the absence of regulation, they attract a significant clientele due to advertising and promises of rewards, which, in most cases, result in the loss of public savings.”
According to the report, Cameroon has a significant cryptocurrency user base, with approximately 900,000 individuals participating, constituting about 6.76% of its active population. The research revealed a notable increase in the number of cryptocurrency users, largely attributed to the convenience of online transactions, which became especially important during the COVID-19 pandemic.
The lack of formal agreements between users and crypto exchanges was also found to be a problem, as the companies could operate without any constraints, which is identified as potentially jeopardizing the interests of investors/users.
According to the study, among the individuals surveyed:
- Only 737 respondents (39.3%) reported receiving a contract, and
- A significant 89% of them indicated that they reviewed the contract before signing it
The study recommends:
- A need for clarifying contract terms and the establishment of regulatory measures aimed at safeguarding investors and ensuring financial stability
- The identification and closure of ponzi schemes
- The formalization of regulations, and
- Increase in public awareness regarding the risks associated with cryptocurrencies
The study surveyed 18 cryptocurrency companies, primarily engaged in activities such as offering investment advice, facilitating online buying and selling of cryptocurrencies, and managing cryptocurrency portfolios.
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A majority of the respondents belong to the 20 to 30-year-old age bracket, and a significant portion of them hold higher education degrees. Most investors have modest incomes, with only a small fraction earning over 500,000 FCFA (~$81) monthly.
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