Lasberry Chioma Oludimu, Managing Director of Yellow Card Nigeria, asserts that Nigeria is leading in cryptocurrency regulation compared to Kenya. Nigeria is in a regulatory incubation phase allowing exchanges to operate under SEC supervision, while Kenya is still trying to finalize comprehensive legislation. Kenya’s recent bill focuses primarily on taxation rather than establishing a robust regulatory framework, showcasing Nigeria’s advanced position in this evolving market.
Nigeria has made significant headway in the crypto regulation landscape, placing itself ahead of other African nations, including Kenya, according to Lasberry Chioma Oludimu, Managing Director of Yellow Card Nigeria. Speaking during the LightSpark Developers Day in Lagos, Oludimu elaborated on Nigeria’s current regulatory stance, which is primarily a regulatory incubation phase. Here, cryptocurrency exchanges are allowed to operate under the supervision of the Securities and Exchange Commission (SEC) once they undergo an ‘Approval-in-Principle’ process.
Oludimu indicated that this model allows exchanges to share data with regulators, fostering a collaborative atmosphere for effective regulation. Comparatively, she highlighted that Kenya is still seeking to finalize legislative measures regarding cryptocurrency, lacking a fully operational sandbox environment and comprehensive regulatory framework. Consequently, Nigeria is regarded as a frontrunner in this domain, paving the way for responsible crypto trading in Africa.
The existing regulatory bill in Kenya, focusing primarily on tax implications rather than comprehensive regulation, stands in stark contrast to Nigeria’s efforts. While Kenya has witnessed significant crypto adoption, with approximately 8.5% of its population involved in cryptocurrencies, the regulatory approach appears more focused on revenue generation. In December 2023, Kenya’s National Assembly approved a bill that seeks to impose taxes on crypto transactions, thereby acknowledging the need for regulation, albeit lacking the depth seen in Nigeria’s methodology.
Oludimu further emphasized Nigeria’s robust regulatory framework and shared insights that neighboring countries, like Malawi, are inclined to learn from Nigeria’s model. Yellow Card is actively pursuing regulatory approval in Nigeria, which it views as essential for enhancing its credibility and service offerings in the crucial crypto market. Following a successful fundraising round, the company is awaiting further evaluations and approvals to solidify its operational standing. Meanwhile, it also secured a Crypto Asset Service Provider license in South Africa, reflecting its commitment to meeting regulatory standards across the continent.
In conclusion, Nigeria’s proactive approach towards crypto regulation, characterized by its unique regulatory incubation phase, has positioned it as a leader in the African market. The collaborative relationship between regulators and cryptocurrency exchanges is nurturing a promising environment for innovation and secure transactions. This contrasts with Kenya, where regulation is more about taxation than fostering a sustainable operating environment for crypto-related businesses.
Overall, as Africa’s largest cryptocurrency market continues to evolve, regulatory frameworks such as that established in Nigeria serve as templates for neighboring countries aiming to harness the benefits of the burgeoning digital asset landscape.
The landscape of cryptocurrency regulation in Africa is evolving, with different countries making various strides towards establishing frameworks that govern the use and trading of digital assets. Nigeria has emerged as a leader in this respect, having implemented a regulatory incubation phase aimed at fostering a collaborative environment between cryptocurrency exchanges and the regulatory authorities. Conversely, Kenya, despite its significant cryptocurrency user base, is still in the process of enacting comprehensive regulations, limiting its capacity to fully regulate the market and nurture innovation. This comparative development highlights the varying approaches taken by African nations in embracing cryptocurrency and the associated regulatory measures required to govern this rapidly growing sector.
In summary, Nigeria’s regulatory framework for cryptocurrency stands out as a comprehensive and collaborative approach, making it a leader in the African continent. The regulatory incubation phase not only prepares exchanges for compliance but also fosters an environment conducive to innovation. In contrast, Kenya’s current focus on tax legislation without a robust regulatory framework hinders its growth potential in the cryptocurrency space. The advancements in Nigeria’s framework may serve as an influential model for other African countries as they strive to regulate their digital currency markets effectively.
Original Source: technext24.com
