Cameroon

The CFA Franc in Cameroon is currently stable with active institutional support and no immediate threat of devaluation, though fiscal and external pressures require continued monitoring.

Financial Stability: Risks to the stability of the financial system.

Consumer Protection: High volatility and lack of recourse for users.

Anti-Money Laundering (AML) / Combating the Financing of Terrorism (CFT): Potential for illicit activities due to anonymity.

Lack of Legal Tender Status: Cryptocurrencies are not recognized as legal tender within the CEMAC zone.

Cryptocurrency Exchanges: There is no legal framework to license or regulate cryptocurrency exchanges. Any entity attempting to operate an exchange would face severe challenges in accessing banking services and could be deemed to be operating outside the established financial regulatory framework.

Custody Providers: Similar to exchanges, no specific license exists. Financial institutions are prohibited from holding or facilitating virtual assets, making traditional custody services for crypto impossible within the regulated sector.

Payment Processors: Payment processors dealing with fiat currency are regulated by BEAC and require licenses as Electronic Money Institutions or Payment Institutions. However, they are explicitly prohibited from dealing with cryptocurrencies. Therefore, there are no licenses for crypto-specific payment processing.

Neither a specific registration nor a licensing regime for VASPs exists in Cameroon. The current environment is effectively one of prohibition for regulated financial entities, without a corresponding framework for independent crypto businesses.

Entities seeking to operate in the crypto space would likely face a lack of legal recognition and significant operational hurdles, particularly concerning banking relationships.

Capital Requirements: For financial institutions, BEAC and COBAC impose strict capital requirements (e.g., minimum capital for banks, microfinance institutions, payment institutions). Any future VASP license would likely have similar prudential requirements.

Cameroon has a general Law No. 2016/007 of 12 July 2016 on the Fight against Money Laundering and Terrorist Financing.

The National Agency for Financial Investigation (ANIF) is Cameroon's Financial Intelligence Unit (FIU) responsible for receiving and analyzing suspicious transaction reports (STRs).

Any future crypto regulation would undoubtedly incorporate robust AML/KYC obligations, likely aligned with FATF recommendations, including customer identification, transaction monitoring, and STR filing.

Local Presence: For most regulated financial activities in Cameroon, a local corporate entity and physical presence are mandatory. This would likely extend to any future crypto licensing.

BEAC Communiqué on Cryptocurrencies (December 10, 2021):

The BEAC website now provides a dedicated, directly accessible page for all its press releases at https://www.beac.int/beac/communiques-de-presse/, making persistent links to official communiqués readily available rather than challenging to find.

Reference: Banque des États de l'Afrique Centrale, Communiqué on Cryptocurrencies, December 10, 2021.

News articles and legal analyses referencing post-election violence and a constitutional crisis in Cameroon are already published and available.

Example (illustrative, not official BEAC link): African Legal Network blog referencing BEAC's stance: https://www.africanlegalnetwork.com/media/cemac-the-central-bank-bans-the-use-of-crypto-currencies-in-the-cemac-zone-alns-monthly-newsletter/ (Note: This is a third-party legal analysis, not the BEAC official site itself, but accurately reflects the directive).

Law No. 2016/007 of 12 July 2016 on the Fight against Money Laundering and Terrorist Financing:

This is the general AML/CFT law in Cameroon. Official government portals may host it.

Reference: Law No. 2016/007 of 12 July 2016 on the Fight against Money Laundering and Terrorist Financing in Cameroon.

Finding a direct, public PDF link can be variable, but it's the foundational AML law.

BEAC (Banque des États de l'Afrique Centrale) Official Website:

For general information on monetary policy and financial regulation in the CEMAC region.

COBAC (Commission Bancaire de l'Afrique Centrale - Central African Banking Commission) Official Website:

Oversees financial institutions in the CEMAC zone.

Security Tokens: These are tokens explicitly designed to represent traditional financial assets such as:

Units in collective investment undertakings (funds).

Rights to future profits or revenue streams.

Real estate or other tangible assets.

These are unequivocally considered securities and fall under COSUMAF's regulatory purview.

Investment-Contract Tokens (Hybrid Tokens): Tokens that may offer some utility but are primarily marketed or structured with an expectation of profit derived from the efforts of others (the issuer or project team). If the primary driver for acquiring the token is investment rather than immediate consumption or use of a service, it will likely be treated as a security. This is where the "substance over form" analysis is crucial.

Stablecoins: Depending on their structure, stablecoins could be considered securities if they are managed by a third party with an expectation of profit for investors, or if they represent a claim on a basket of assets that itself qualifies as a financial instrument. However, they are more often viewed through a monetary or payment lens by the BEAC.

Tokens Generally NOT Considered Securities (but may face other regulations):

Pure Payment Tokens (e.g., Bitcoin, Ethereum): The BEAC has repeatedly declared that cryptocurrencies are not legal tender in the CEMAC zone and has issued warnings regarding their speculative nature and risks. While not classified as securities, their use is highly discouraged and subject to monetary policy scrutiny.

Pure Utility Tokens: Tokens that provide immediate access to a specific product or service, without an inherent expectation of profit from the issuer's efforts, are generally not considered securities. However, if they are marketed for future appreciation or grant rights akin to an investment, they could be reclassified.

Prior Authorization: Any public offering of securities (including security tokens) in the CEMAC zone requires prior authorization from COSUMAF. This is a fundamental requirement.

Details of the issuer (legal form, management, financial situation).

Description of the token/security being offered.

Information on the project or underlying assets.

Risks associated with the investment.

Ongoing Reporting: Issuers of authorized securities are subject to ongoing reporting obligations, including financial statements and significant event disclosures.

Exemptions: The regulation provides for certain exemptions from the prospectus requirement, similar to traditional securities laws. These typically include:

Private placements: Offerings made only to qualified investors or a limited number of persons.

Offerings below a certain monetary threshold (the regulation specifies thresholds, e.g., for offers whose total value is less than 50 million CFA francs within a 12-month period).

Offerings to existing employees under certain conditions.

Regulated Markets: Trading of security tokens would theoretically need to occur on exchanges approved and regulated by COSUMAF. Currently, there are no COSUMAF-regulated exchanges specifically for crypto assets.

Market Conduct Rules: Rules against market manipulation, insider trading, and other illicit practices would apply.

Intermediaries: Any entity acting as a broker, dealer, or custodian for security tokens would need to be licensed and supervised by COSUMAF as a financial market intermediary.

Clearing and Settlement: Transactions would need to adhere to the clearing and settlement frameworks overseen by COSUMAF and the BEAC.

The nascent stage of the crypto market in the region.

While specific national crypto legislation is absent, the regulatory environment is significantly influenced by binding regional directives from BEAC.

The fact that most crypto activities might not clearly fall under the "securities" definition and are often addressed by the Central Bank (BEAC) from a monetary stability and consumer protection perspective.

Cease and Desist Orders: An halt to the offering may be required after a grace period, such as a three-month ultimatum, for non-compliant entities.

Significant monetary penalties are enforced across various sectors, such as telecommunications and trade, with penalties varying according to the nature of the violation.

Legal Proceedings: Potential criminal charges for illegal public offerings.

Communiqué de Presse n° 001/GR/2021 du 10 Décembre 2021: The BEAC issued a strong warning, reminding the public that virtual assets and cryptocurrencies are not legal tender in the CEMAC region and are not issued or guaranteed by the Central Bank. It highlighted risks such as price volatility, cybercrime, money laundering, and terrorist financing. While not directly about securities classification, this underscores a cautious regulatory environment.

COSUMAF (Commission de Surveillance du Marché Financier de l'Afrique Centrale):

BEAC (Banque des États de l'Afrique Centrale):

The CEMAC-wide Ban on Crypto-Assets by BEAC: This is a foundational regulatory action that makes all crypto-related activities illegal and provides the basis for enforcement.

Enforcement against crypto-related Ponzi schemes/fraudulent operations.

Regulator Name: Bank of Central African States (BEAC - Banque des États de l'Afrique Centrale), the central bank for the CEMAC region (which includes Cameroon).

No comprehensive regulatory framework targeting all entities engaged in crypto-asset activities exists in Cameroon; the market remains largely unregulated.

A comprehensive ban on all crypto-asset related activities is not currently enforced in Cameroon. Despite an earlier directive, evidence from 2023 indicates significant crypto adoption in the country, suggesting that such a ban is not being broadly applied or is no longer current.

Penalty Amount: N/A (This is the regulatory directive itself, not an enforcement action with a penalty). Penalties would stem from subsequent enforcement actions against specific entities violating the ban, which are usually handled by national judicial systems or financial police.

Outcome: Established a clear and comprehensive prohibition on all crypto-asset related activities across the CEMAC region. This makes any operation of a cryptocurrency exchange, mining operation, or widespread trading highly illegal and subject to enforcement by national authorities (police, judiciary, financial intelligence units) in each CEMAC member state, including Cameroon.

IMF Report mentioning the circular: https://www.imf.org/en/News/Articles/2022/10/05/pr22336-imf-executive-board-concludes-2022-article-iv-consultation-with-cemac (See section on policy recommendations and risks).

Regulator Name: Primarily the Judicial System of Cameroon, including the Police (Direction Générale de la Police Nationale) and the National Financial Investigation Agency (ANIF - Agence Nationale d'Investigation Financière). The BEAC ban (mentioned above) would provide an additional regulatory basis for the illegality of the operation.

Entity Targeted: Global Investment Trading (GIT) and its founder, Emile Parfait Mbori, along with several associates. Violation Type: Operating an illegal financial scheme (Ponzi scheme), fraud, illegal public offering of financial products, money laundering. Although often marketed as "crypto" (sometimes involving Mofor Coin), the core violation was operating an unregistered and fraudulent investment scheme. Penalty Amount: Not a final judicial penalty yet, as legal proceedings are ongoing. However, significant actions include:.

Arrests and detention of the founder and associates.

Seizure of assets belonging to the company and its founders (e.g., properties, vehicles, bank accounts).

Victims are seeking restitution, potentially totaling billions of FCFA.

Date: Arrests and significant enforcement actions occurred primarily between late 2022 and early 2023, following public outcry and investigations. The scheme itself had been operating for some time prior.

Outcome: The founder, Emile Parfait Mbori, and several accomplices were arrested and detained. The company's operations were shut down. Legal proceedings are continuing in Cameroonian courts, aiming for convictions and potentially restitution for victims. This case sent a strong signal against unregulated investment schemes, particularly those leveraging the allure of cryptocurrency.

Journal du Cameroun (French): https://www.journalducameroun.com/cameroun-la-justice-met-fin-aux-activites-de-global-investment-trading/ (Article from Jan 2023 discussing the arrests)

Actu Cameroun (French): https://actucameroun.com/2023/01/24/affaire-git-le-promoteur-emile-parfait-mbori-et-ses-complices-transfere-a-la-prison-centrale-de-kondengui/ (Article from Jan 2023 on the transfer of Mbori to prison)