Binance champions crypto regulation clarity and cyber security at Nairobi event

While regulatory uncertainty has slowed crypto adoption in some nations, recent collaborations with industry leaders are helping governments formulate clearer frameworks and strengthen cybersecurity defences.

With hundreds of millions of unbanked and underbanked Africans, digital assets have gained traction as an alternative financial system.

However, concerns over fraud, money laundering, and the lack of clear legal guidelines have led to mixed reactions from regulators. Some, like Nigeria and Kenya, have moved to impose restrictions, while others, including South Africa and Mauritius, are embracing tailored regulatory approaches.

Binance, the world’s largest cryptocurrency exchange, says it has been actively engaged with African governments to provide technical expertise in regulatory development and cybersecurity measures. 

Speaking during a press event in Nairobi on March 19, Rachel Conlan, the Global Chief Marketing Officer at Binance, shared the company's vision and strategy for deepening its regulatory engagement in the Kenyan market. 

She expressed optimism about the progressive steps being taken by global and local regulators.

“We're excited that regulatory clarity being set by Europe, being set by the U.S., already being taken seriously by Kenya is something that's going to help us grow the industry more and create more economic opportunity,” Conlan said. This clarity, she argued, is essential for fostering innovation and investment, and also for ensuring the protection of users and the integrity of the financial system.

Binance bases its local growth on Kenya's unique demographic profile, which boasts over 4.4 million active crypto users.

“When you consider that 74 percent of Kenya's 54 million population is under 35, you begin to understand the vast potential and opportunity that lies ahead for integrating cryptocurrency more seamlessly with traditional financial systems,” she told the press. 

This young demographic, she added, represents not just a target market for Binance but also a dynamic force that could drive the adoption of digital finance solutions across Africa.

Addressing user education and safety, the marketing chief emphasized Binance's stringent security measures designed to safeguard users and reinforce trust.

“It is safe if you use the right platforms and do the right research, ensuring that you have multi factor authentication activated and that your passcodes or passwords are kept secure and private,” Conlan advised.  

Binance, Conlan assured, is actively working to combat crypto scams and enhance cybersecurity, even as the rise of AI complicates the global fight against cybercrime. “Unfortunately, scams and cybersecurity challenges are a part of our everyday modern society. We are really committed at Binance, and we take security very seriously,” she said. 

She explained that Binance's large compliance and cybersecurity team works continuously with local law enforcement to mitigate risks associated with scams. In 2021, Kenyans lost $120 million to crypto-related crimes, while South Africans saw losses of $99 million, according to the Global State of Scams report. 

South Africa has also been home to two of the largest crypto scams in history: Mirror Trading International (MTI), which defrauded hundreds of thousands of investors of approximately $589 million, and Africrypt, which vanished with around $3.6 billion worth of bitcoin. On a global scale, crypto crimes accounted for losses exceeding $20 billion in 2022.

Binance’s commitment to the Kenyan market was palpable as Conlan discussed the company’s current market penetration and future goals.

“We're really excited as Binance and we're excited to be spending time here to learn more about the community,” she said.” “We're at 5 percent penetration in Kenya. I would love to see it get to 20 percent penetration in the next 24 months.”

Kenya, with reducing cost of smartphones and mobile internet, is rapidly becoming a hotspot for digital finance, especially cryptocurrency. The country ranks high globally in crypto penetration and mobile money usage.

The Nairobi community meet-up event was part of Binance’s broader initiative to educate potential users, ensure compliance with local and international regulations, and foster a secure environment for cryptocurrency transactions.

With regulatory landscapes for cryptocurrencies becoming clearer in regions like Europe and the U.S., Binance hopes to align with these standards globally while pushing for similar regulatory clarity in African markets.