Legal Crypto In Cameroon

Cryptocurrency in Cameroon

Cryptocurrency has introduced worldwide financial revolutions by providing decentralized methods of transactions and investments. In Cameroon, the use of digital currencies is on the rise, driven by increasing internet penetration and a tech-savvy youth population. This article explores the legal status of cryptocurrencies in Cameroon, the regulatory framework, and the state of the crypto-exchanges market, including decentralized finance (DeFi) and non-fungible tokens (NFTs).

Legal Status of Cryptocurrency in Cameroon

In Cameroon, there are no specific regulations or laws that govern, regulate, or ban the buying, selling, or holding of cryptocurrencies. The Bank of Central African States (BEAC), which regulates monetary policy for the Central African Economic and Monetary Community (CEMAC), has not adopted overarching regulations on cryptocurrencies. However, the BEAC has cautioned banks against engaging in crypto-based transactions due to risks such as money laundering and fraud. Despite this, the absence of clear prohibitions has created an open but unregulated environment.

The legal framework for the financial sector in Cameroon is primarily based on CEMAC regulations and national laws, such as the banking law of 2016. These laws target fiat financial instruments and do not yet address digital currencies. In 2022, the Central African Republic, a fellow CEMAC member, temporarily adopted Bitcoin as legal tender, sparking regional debate. However, Cameroon has remained uncommitted, leaving crypto transactions in a legal vacuum where compliance with financial laws falls on users.

Regulatory Landscape

Cameroon lacks cryptocurrency-specific legislation, reflecting the government’s cautious stance toward new technologies. The Ministry of Finance and the National Agency for Financial Investigation (ANIF) oversee financial transactions to combat money laundering and terrorism financing, which may indirectly affect crypto activities. For instance, large crypto transfers could trigger scrutiny under anti-money laundering (AML) laws. The Cameroon Tax Code does not explicitly mention crypto taxes, but profits from crypto trading may be subject to general income tax rules.

Regionally, the BEAC is exploring a central bank digital currency (CBDC), which could introduce restrictions on decentralized cryptocurrencies to modernize the economy. For now, crypto users in Cameroon operate in a grey area without specific legal protections or obligations regarding crypto possession, use, and trade.

Investor Favorite Exchanges and How to Exchange

Cameroonians have access to several exchanges, with peer-to-peer (P2P) platforms being particularly popular due to their flexibility. Binance, one of the world’s largest exchanges, operates in Cameroon, allowing users to trade P2P and buy or sell digital assets like Bitcoin (BTC) and Ethereum (ETH) using mobile money providers such as MTN Mobile Money and Orange Money. Other platforms, such as Paxful and LocalBitcoins, also facilitate P2P transactions with minimal intermediary involvement.

Centralized exchanges like Kraken and Coinbase are less common, as they support only a few Cameroonian bank accounts. Consequently, many users rely on mobile money or cash-based P2P transactions. Crypto ATMs are virtually nonexistent, and person-to-person exchange networks, such as WhatsApp or Telegram groups, are used for small-scale trading, showcasing the innovative approaches Cameroonians employ to access the crypto market despite infrastructural challenges.

DeFi and NFT Markets

Decentralized finance (DeFi) is gaining traction in Cameroon, particularly among young entrepreneurs and developers. Platforms like Uniswap, Aave, and PancakeSwap enable lending, borrowing, and trading without intermediaries. However, adoption remains low due to limited awareness, technical complexities, and the need for reliable internet connectivity. Most DeFi users in Cameroon rely on mobile wallets like MetaMask, often holding stablecoins to mitigate price volatility.

The NFT market in Cameroon is in its early stages but shows promise. Local artists and creatives are beginning to explore NFTs to monetize digital art, music, and collectibles on platforms like OpenSea and Rarible. High Ethereum gas fees pose a challenge, prompting some creators to adopt layer-2 solutions or alternative blockchains like Polygon for lower costs. Projects like AfroNFT are promoting African creators, but limited digital literacy and institutional support restrict broader NFT adoption.

Key Points

• Tax: Profits from cryptocurrency transactions may be considered capital gains under Cameroon’s general taxation rules, though enforcement is weak.
• Security Risks: Users must choose secure wallets and verified exchanges to mitigate risks of scams and hacks.
• Regional Context: Cameroon’s cryptocurrency regulation aligns with the broader CEMAC framework, which remains cautious toward cryptocurrencies.
• Trends in Adoption: Urban centers like Douala and Yaounde exhibit the highest crypto use, driven by tech hubs and startups.

Table of Useful Information

Aspect	Details
Primary Regulator	Bank of Central African States (BEAC)
Popular Wallets	MetaMask, Trust Wallet, Binance Wallet
Common Cryptocurrencies	Bitcoin (BTC), Ethereum (ETH), Tether (USDT)
P2P Trading Platforms	Binance P2P, Paxful, LocalBitcoins
Internet Penetration	Approximately 37% (2023), impacting crypto adoption
DeFi Participation	Low but growing, with focus on stablecoin-based protocols

Conclusion

The cryptocurrency landscape in Cameroon is permissive but unregulated, offering opportunities for innovation while posing significant risks due to the lack of official oversight. The absence of regulation enables residents to engage in crypto activities but exposes them to financial and legal uncertainties. Platforms like Binance and P2P networks, along with emerging DeFi and NFT markets, provide pathways to financial freedom. As Cameroon navigates the evolving digital economy, clear regulations will be essential to balance innovation and protection. For now, crypto enthusiasts must stay informed and cautious while leveraging the growing ecosystem for financial inclusion and creativity.