Nigerian authorities are cautiously advancing regulatory measures for the country’s leading cryptocurrency market amidst fraud concerns and economic volatility. Recent SEC approvals for exchanges mark initial steps toward creating a structured framework, though issues of skepticism and investment scams remain prevalent. The evolving regulatory landscape reflects a potential shift towards embracing digital assets despite inherent risks.
Nigerian authorities are cautiously moving to regulate the country’s cryptocurrency market, the largest in Africa. Despite cryptocurrencies’ popularity, regulatory scrutiny has been prevalent due to concerns over fraud and market volatility. Nigeria ranked second globally in crypto adoption, trailing only India, according to Chainalysis.
Recently, a more structured regulatory environment has emerged, though issues surrounding fraud remain. Emomotimi Agama, the director-general of the Securities and Exchange Commission (SEC), announced ongoing efforts to clarify regulations on digital assets. The SEC has granted initial approvals for exchanges to operate, including Busha Digital Limited and Quidax Technologies Limited, which have since commenced activities.
Buchi Okoro, CEO of Quidax, stated that this regulatory initiative could enhance market trust and stability, emphasizing the focus on customer protection. However, the sector still grapples with skepticism and fraud, highlighted by the Economic and Financial Crimes Commission (EFCC) arresting 792 suspects linked to cryptocurrency scams, including romance frauds.
Nigeria’s parliament is evaluating an investment and securities bill aimed at establishing a regulatory framework for digital currencies. President Bola Tinubu, during his candidacy, indicated a desire for a favorable regulatory environment for digital assets, diverging from his predecessor’s stringent stance. Nevertheless, in a reversal, new restrictions on crypto exchanges were introduced, particularly affecting Binance when the central bank’s governor attributed currency declines to its operations.
Laolu Biyi Samuel, co-founder of Busha Digital Limited, remarked on the improving regulatory atmosphere despite historical challenges. The potential economic benefits of digital assets remain under consideration amidst ongoing worries regarding money laundering and terrorism financing. Obinna Iwuno, president of Stakeholders in Blockchain Association of Nigeria, advocated for urgent regulatory clarity and development of a national Bitcoin strategy to address these issues.
Nigerian authorities are gradually regulating the country’s substantial cryptocurrency market to foster legal clarity amid concerns over fraud and volatility. Recent approvals for exchanges and legislative proposals indicate a positive shift, though skepticism and fraud persist. The ability of Nigeria to effectively manage these regulations could shape its economic future while addressing threats associated with digital currencies.
Original Source: www.voiceofalexandria.com
