Now meet Ama, a dynamic small business owner from Accra, Ghana. She started using crypto to get paid by her European clients for her handmade jewelry. It’s quicker and less expensive than standard international money transfers. By eliminating expensive bank fees, she’s able to chip the savings right back into her business and community. Now, imagine that access being choked off.

That’s the dystopia we stand to make reality if we don’t stop short-sighted crypto regulation from gaining further momentum. We're told these regulations are for our protection, but I'm starting to suspect they're more about protecting the established power structures of big finance – TradFi – at the expense of everyday people like Ama, particularly in the Global South.

Whose Rules? Whose Benefits Exactly?

Let's be blunt: the people shaping crypto regulation are overwhelmingly from TradFi backgrounds and law firms deeply entrenched in traditional finance. Are they truly prepared to grasp the complexities of decentralized technology and its regulatory implications? Or are they just doing their best to fit a really exciting new idea into an old, and honestly, pretty terrible, framework? The "integrators, the assimilators and the mainstream adopters" are being prioritized. Where's the room for true innovation?

This is more than the technical nitty-gritty. It’s about the power. Often these regulations replicate Western financial regulations. In doing so, they risk imposing a one-size-fits-all approach that fails to recognize the distinct needs and realities of developing economies. In Ghana, and throughout Africa, crypto is more than an investment speculation; it’s a necessity. It’s a tool for remittances, a hedge against inflation, and a pathway to financial inclusion for the unbanked population. Excessive regulations in these areas are closing the door on access to crypto. This is directly hurting the people who need it most.

KYC: Know Your Customer, Expose Your Life?

The relatively recent push for Know Your Customer (KYC) compliance offers a perfect example. The purpose of these regulations is a great one—to stop money laundering and other nefarious deeds. The truth is, it’s frequently a much darker, more nefarious world. We hear constantly that all of this is justified by security, but what do we do when all of that sensitive data is exposed?

Think about this: If Coinbase, a major player, suffers a data breach in 2025 – and let's be honest, data breaches are becoming increasingly common – millions of users' personal information could be exposed. Names, addresses, financial details…all things just begging to be exploited in fraud and social engineering attacks. And who suffers most? Often, it's the most vulnerable among us.

Consider Ama again. If her KYC data is discovered, she might soon be targeted with scams or maybe a physical assault. This isn't theoretical. Such “wrench attacks,” in which crypto holders are physically threatened or robbed, are increasingly common. After all, is the illusory promise of security worth the very real risk of continuing to put people’s lives in danger?

Privacy Is Not A Crime, It's A Right

The answer isn’t to eschew regulation completely, but to adopt smart regulation. A non-proprietary approach that begins with user privacy and security as foundational tenets, and aims to foster innovation. Privacy-Enhancing Technologies (PETs) such as decentralized digital identities and zero-knowledge cryptography hold great promise as a way forward. These technologies support a way for consumers and other users to verify and demonstrate compliance with regulations without sharing sensitive PII.

Now, picture if Ama were able to confirm her identity through a decentralized technology. She would not need to surrender all of her data to a centralized data exchange. That's the power of PETs. As such, they provide a robust mechanism for balancing the need for regulatory compliance with an individual’s privacy interests. Now more than ever, crypto technologists should be at the table—we don’t need only lawyers and TradFi executives.

It's not just about KYC. Regulatory requirements like the Travel Rule and the upcoming Cryptoasset Reporting Framework threaten to create massive databases of user information, further increasing the risk of data breaches and surveillance. We need to ask ourselves: are we building a system that protects users, or one that empowers governments and corporations to monitor their every move?

Africa Must Lead, Not Follow Blindly

The future of crypto regulation in Africa shouldn't be dictated by Western interests. To achieve these outcomes, African policymakers need to work in concert with crypto technologists. Together, they have the power to chart new regulatory approaches that meet the continent’s distinctive needs and opportunities. This requires considering decentralized alternatives, embedding user privacy within any solution and encouraging innovation.

That starts with challenging the assumption that Western models are necessarily better. We can work together to ensure that crypto remains a powerful force for economic empowerment that uplifts us all. It needs to be regulated in order to ensure its use is inclusive and individual rights are protected.

So, I ask you again: Is crypto regulation protecting you, or just big finance? The answer depends on whether we're willing to challenge the status quo, demand greater transparency, and fight for a future where technology empowers everyone, not just the privileged few. If you feel the same way, amplify this and together, let’s change the discussion. Ama’s livelihood, and the economic future of millions, could very well hinge on it.