The Ministry of Finance in Cameroon is urging the implementation of crypto regulations in order to safeguard the interests of approximately 900,000 cryptocurrency users and combat the proliferation of Ponzi schemes within the crypto sector. The absence of clear directives from the Central African Financial Market Supervisory Commission (COSUMAF) has created an uncertain regulatory landscape, which has, in turn, paved the way for fraudulent schemes to thrive.

The ministry’s recent report on cryptocurrency and Ponzi schemes highlights the prevalence of these fraudulent operations in Cameroon’s crypto ecosystem. These nefarious entities lure unsuspecting investors with enticing promises of rewards, which often lead to substantial financial losses for the public. 

According to the study, the cryptocurrency user base in Cameroon constitutes roughly 6.76% of the active population, with around 900,000 individuals actively participating. The report attributes this surge in crypto adoption to the convenience of online transactions, particularly during the COVID-19 pandemic.

One glaring issue identified in the report is the absence of formal agreements between cryptocurrency users and exchanges. This lack of contractual clarity allows crypto companies to operate without constraints, potentially putting investors and users at risk.

The study’s key findings include:

– Only 39.3% of respondents (737 individuals) reported receiving a contract.

– A significant 89% of those who did receive a contract indicated that they reviewed its terms before signing.

To address these concerns, the study recommends several measures:

1. Clarification of Contract Terms: There’s a pressing need to establish clear and transparent contract terms to protect investors and ensure financial stability.

2. Crackdown on Ponzi Schemes: Swift identification and closure of Ponzi schemes within the crypto space to prevent further harm to investors.

3. Formalization of Regulations: The establishment of comprehensive regulatory frameworks for the crypto industry.

4. Increased Public Awareness: Educating the public about the inherent risks associated with cryptocurrencies.

The study involved a survey of 18 cryptocurrency companies primarily involved in activities such as providing investment advice, facilitating online crypto transactions, and managing crypto portfolios.

Notably, a majority of respondents were between the ages of 20 to 30, and many held higher education degrees. Most investors had modest incomes, with only a small fraction earning over 500,000 FCFA (approximately $81) per month.

In conclusion, the Cameroon Ministry of Finance’s call for crypto regulations aims to protect the burgeoning crypto community in the country from fraudulent schemes and ensure the long-term stability of the digital asset market. These measures also seek to promote financial literacy and responsible investment practices among cryptocurrency users.