Nigeria’s cryptocurrency community has supported the adoption of Europe’s Markets in Crypto-Assets Regulation (MiCA), particularly its stablecoin rules. This enthusiasm stems from believing such regulations could safeguard local currencies while prioritizing national interests in crypto projects. Obinna Uzoije, a policy analyst from Nigeria, believes that ECOWAS would greatly benefit from adopting a regulatory framework similar to Europe’s. He suggests this approach could enhance governance across West African states.
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ECOWAS urged to adopt crypto rules like Europe’s MiCA. Nigeria’s crypto community praises Europe’s MiCA regulation, urging ECOWAS to adopt similar crypto frameworks. Analyst Obinna Uzoije highlights the benefits of unified regulations for member states.… pic.twitter.com/pSffCgrabrAdvertisement
— InnovatekMobile (@Neome_com) June 30, 2024
ECOWAS Aims for Unified Crypto Regulation
Uzoije highlighted the importance of stablecoins, noting they are Africa’s most used crypto assets. He emphasized the importance of the MiCA’s “Stablecoins Regime,” set to start on June 30, for regulating these assets in the EU. This regime is key to managing stablecoins effectively within the European Union. The regime requires that issuers or traders of asset-referenced tokens and e-money tokens in the EU secure a MiCA license, which is essential for operating within the European Union.
With Nigerian President Bola Tinubu at the helm of ECOWAS, Uzoije sees a unique opportunity to establish a unified regulatory framework across its 15 member states. This move could harmonize the currently diverse and sometimes stringent cryptocurrency regulations, like those in Sierra Leone, which outright ban cryptocurrencies. A unified framework would streamline investment rules for potential investors by removing the need to comply with national regulations. This simplification would facilitate smoother investments across member states.
Moreover, Uzoije addressed the significant concerns around money laundering and terrorism financing linked to cryptocurrencies. He urged ECOWAS to improve regulatory measures for effectively tracking and combating illegal activities. He emphasized the need for a coordinated approach.
Nigeria SEC Launches New Crypto Regulatory Framework
The Nigeria Securities and Exchange Commission (SEC) recently unveiled a new regulatory framework for digital assets, which was announced shortly after U.S. lawmakers visited detained Binance executive Tigran Gambaryan. The framework establishes the Accelerated Regulatory Incubation Program (ARIP) to boost fintech compliance. ARIP gives virtual asset service providers (VASPs) 30 days to meet regulatory standards and warns of strict penalties for non-compliance.
🇳🇬 Nigeria’s SEC announced amendments to crypto regulations to strengthen the regulatory environment, targeting issuance, platforms, exchanges, and custody. They are also introducing a compliance program for VASPs, who must complete onboarding within 30 days. 📜 #Bitcoinworld
— BitcoinWorld Media (@ItsBitcoinWorld) June 22, 2024
Nigeria’s involvement in cryptocurrency is expanding, and it became the second-largest crypto market in 2023. It also topped global crypto-related Google searches in August 2022. Rising crypto activity has led the SEC to suggest a fee hike for crypto exchanges. The proposed increase is from 30 million naira ($18,620) to 150 million ($93,000). These regulatory adjustments reflect Nigeria’s commitment to fostering a secure and thriving digital asset market while ensuring regulatory oversight adapts to the industry’s rapid growth.
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