Catenaa, Sunday, March 09, 2025 – South Africa decentralized finance (DeFi) market is poised for significant growth, with projections estimating the market will hit $180.7 million by 2028.
The Financial Sector Conduct Authority (FSCA) released a study in February 2025 that forecasts a sharp increase in DeFi transaction volumes, starting from $2.8 million in 2025.
The report identified retail customers and small to medium-sized businesses as key adopters of DeFi services.
DeFi’s main drivers in the country include payment solutions and lending services, which are especially relevant in regions with limited access to traditional banking.
The FSCA sees potential for DeFi to enhance financial inclusion but raised concerns about the lack of regulatory oversight and the risks of fraud and security vulnerabilities.
These risks are underscored by global examples of hacks and fraud in the crypto space, such as the $1.49 billion lost to cybercriminals in 2024.
In response to these concerns, the FSCA is exploring regulatory sandboxes to test DeFi applications while ensuring consumer protection.
The regulator’s report also notes the growth of DeFi platforms in South Africa, with 62% of industry respondents believing that mainstream adoption of cryptocurrencies will spur the sector’s expansion.
South Africa’s crypto and DeFi market is already seen as a leading force in Africa, backed by strong technical infrastructure and high smartphone penetration.
The country’s future DeFi growth hinges on balancing innovation with consumer protection, and regulatory clarity will play a pivotal role in shaping the market’s trajectory.
