Given the risks of money laundering and terrorist financing (AML/CFT) related to wallet → wallet transactions, the challenge for African institutions is not to stifle innovation, but to establish intelligent and tailored mitigation mechanisms.
The first priority is to strengthen the requirements around the entry and exit points of the ecosystem. VASPs must implement rigorous KYC/KYT procedures to identify users before they interact with external wallets. This creates a first level of traceability, even when funds leave a centralized platform.