Cameroon Ministry of Finance Calls for Crypto Regulations to Protect Crypto Users from Ponzi Schemes

The Cameroon Ministry of Finance points to the lack of clear guidance from the Central African Financial Market Supervisory Commission (COSUMAF) as a significant contributor to regulatory uncertainty in the cryptocurrency space.

Pervasion of Ponzi Schemes

The ministry’s study highlights the prevalence of ponzi schemes within Cameroon’s crypto landscape, with numerous companies following a PONZI scheme pattern.

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Expanding Crypto User Base

Cameroon boasts a substantial cryptocurrency user base of approximately 900,000 individuals, constituting around 6.76% of its active population. The surge is attributed to the convenience of online transactions during the COVID-19 pandemic.

Absence of Formal Agreements

A notable challenge identified is the absence of formal agreements between users and crypto exchanges, allowing companies to operate without constraints, potentially jeopardizing investor and user interests.

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Study Findings

  • Only 39.3% of respondents reported receiving a contract.
  • 89% of respondents reviewed the contract before signing it.

Recommendations for Regulatory Clarity

The study recommends clarity in contract terms, regulatory measures to safeguard investors, the identification and closure of ponzi schemes, formalization of regulations, and increased public awareness regarding cryptocurrency risks.

Diverse Socio-economic Backgrounds

Surveying 18 cryptocurrency companies, the study highlights the socio-economic diversity of investors, with most falling within the 20 to 30-year-old age bracket and holding higher education degrees. Modest incomes are reported by the majority, with only a small fraction earning over 500,000 FCFA (~$81) monthly.

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