Crypto’s African future

By Tarryn-Leigh Solomons

As cryptocurrency adoption continues to surge across Africa, the excitement surrounding digital assets is matched by a pressing challenge: ensuring that innovation doesn’t outpace regulation. Noah Perlman, Chief Compliance Officer at Binance, is at the forefront of this conversation, calling for a balanced approach to foster trust, prevent misuse, and drive long-term growth.

“The promise of crypto to revolutionise financial inclusion in Africa is real,” says Perlman. “But without robust regulation, that promise risks being undermined by fraud and illicit activity.”

In 2024 alone, illicit cryptocurrency addresses worldwide received over $40.9 billion, according to blockchain analytics firm Chainalysis — a staggering figure that underscores the need for rigorous compliance frameworks, particularly in developing financial markets like Africa.

Regulation as a catalyst, not a constraint

With a background as a former federal prosecutor and Global Head of Financial Crimes at Morgan Stanley, Perlman brings a deep understanding of both the risks and the potential of financial innovation. His message is clear: compliance and innovation are not mutually exclusive.

“The narrative that regulation stifles innovation is outdated,” he notes. “Compliance provides the structure and accountability that allow new technologies to flourish responsibly.”

Africa, he argues, has the chance to leapfrog outdated financial systems and build digital ecosystems that are secure, inclusive, and transparent—if the right regulatory foundations are laid early on.

A localised approach to compliance

Recognising the continent’s diversity, Binance has made it a priority to tailor its compliance strategies to local contexts.

“Africa is not a monolith,” Perlman explains. “Each country has unique legal systems, cultural dynamics, and enforcement challenges. A one-size-fits-all approach simply doesn’t work.”

Under Perlman’s leadership, Binance has built Africa-based compliance teams who bridge the gap between global standards and local realities. Innovative Know Your Customer (KYC) protocols, such as biometric verification and AI-driven risk models, are designed to reduce user friction while enhancing security.

Binance has also partnered with leading compliance solution providers to deploy advanced risk detection systems, allowing for real-time transaction monitoring and proactive fraud prevention.

Building capacity through education and transparency

Beyond technology, Binance is heavily invested in capacity-building efforts. The company regularly conducts training sessions and workshops for regulatory bodies, police, and financial intelligence units across Africa.

“Trust is built through transparency and collaboration,” says Perlman. “We’re not just talking to regulators—we’re working with them to build understanding and shape policy together.”

In 2023, Binance processed over 2.6 million off-chain alerts, filed more than 51,000 Suspicious Activity Reports, and responded to over 58,000 law enforcement requests, demonstrating the scale and seriousness of its compliance efforts.

A vision for Africa’s crypto future

Perlman remains optimistic about the future of crypto in Africa, but insists that success depends on responsible leadership and ethical governance.

“The companies that lead will be those that embed transparency, compliance, and purpose into their DNA,” he says.

He envisions a digital asset ecosystem that is not only innovative but also grounded in trust, a vision Binance is actively working toward through regulatory partnerships, technological investments, and user education.

“Africa stands at a crossroads,” Perlman concludes. “We can lead the digital financial revolution but leadership requires more than tech. It demands integrity, collaboration, and a relentless commitment to doing what’s right.”

As the crypto conversation on the continent matures, Perlman’s insights signal a turning point, one where the industry shifts from hype to substance, and from disruption to sustainable growth.