Nigeria is establishing regulatory framework for large-scale adoption of cryptomorphs
Africa’s largest economy has become a stronghold for the adoption of cryptomoreds.
Nigeria’s Federal Ministry of Finance would be negotiating with the country’s securities regulator to develop a new regulatory framework for blockchains and cryptomorphs – a move that could accelerate adoption in Africa’s largest economy.
Business Day, a Nigerian market intelligence publication, reported Tuesday that the Ministry of Finance is working with the Abuja Securities and Exchange Commission (SEC) to „provide a regulatory environment for blockchain and digital assets. The publication quotes Ministry adviser Amstrong Takang speaking at an industry event in Lagos on Tuesday.
Digital assets are recognized as commodities and governed by the appropriate securities law in Nigeria following the SEC’s impressive September edict on the subject. At the time, the SEC said its role was to regulate this new asset class, not to prevent adoption or innovation.
According to the Nigerian SEC:
„The overall purpose of regulation is not to prevent technology or stifle innovation, but to create standards that encourage ethical practices that ultimately contribute to a fair and efficient market.“
Bitcoin (BTC) and other cryptomorphs are witnessing a growing adoption in Nigeria as the country struggles with capital controls, devaluation and new protests against police corruption.
Nigerian authorities seem interested in adopting the blockchain, hoping to generate $10 billion in revenue from the new technology by 2030.