Crypto Opinion

Nigeria’s Finance Ministry to Partner with SEC to Design a Solid Crypto Framework

Nigeria’s Finance Ministry will partner with the SEC of the country to design a solid crypto asset regulation framework. This will benefit the stakeholders of the country who want to seek fair play. 

According to a new publication on Beincrypto, on November 24th, the Finance Ministry of Nigeria has said that it will partner with the country’s SEC to come up with a robust crypto framework. 

This move will make it easier for users and stakeholders to invest in the market. The SEC of Nigeria had earlier released a code claiming crypto trading is a regulated activity. Besides, crypto-assets can be used as securities.

Frank Eleanya, who is a Fintech analyst, had tweeted about the current development. 

https://twitter.com/FrankEleanya/status/1331212780519772160?s=20

The collaboration between the Ministry of Finance and the SEC was confirmed, on November 24th, at ‘Fintech In Nigeria: State Of Play,’ in Lagos. Mastercard organized it in partnership with The Economist Intelligence Unit.

Many stakeholders of the FinTech sector were in attendance. Armstrong Takang, who is the special advisor to the ministry on ICT, stated that the Nigerian government saw a new horizon in the crypto market. 

Though the development saw a Nigerian financial regulator adopting a solid position on cryptocurrency for the first time, there was no recognition from the Central Bank of Nigeria (CBN).

Paul Ezeafulukwe, who is the Blockchain Association of Nigeria President, said that The CBN is a major stakeholder of the “blockchain adoption strategy,” and he does not expect them to come up with a regulation based on the “principles and strategies” to the development. 

A news article on Tokenhell has rightly said that, in the whole of Africa, Nigeria is one of the stable working economies. Additionally, the crypto framework will only make it better. The only other country in Africa to do the same was South Africa. 

They were able to check irregularities, if any, carried out in the cryptocurrency market. The same want to be done by Nigeria. They are currently witnessing a huge surge in demand for cryptocurrency activities, and inclusion into the market was imminent.

Africa’s Bitcoin story receives a boost after more adoption

In one of the podcasts by the CEO of Bitcoin Co., he implied that the general popularity of Bitcoin has increased especially in the African countries. People seem to have understood and have begun to embrace the concept which is why the usage in many parts of the continent has seen a rise. Bitcoin has a short history which can prove to be a valuable lesson to those countries who have just begun with its use. People are looking at Bitcoin as that medium that offers easy money exchange solutions despite geographical barriers. It is also seen as an asset that will be recorded digitally leaving no scope for governments to loot wealth. 

Africa is slowly emerging as a huge market for the adoption of not just bitcoins but several other financial technology solutions like it. Yele Bademosi who is the Founder of Microtransaction believes that the Millenials of the nation believe that Bitcoin is a truly worth investment asset because it is a good hedge against inflation and its return potential is larger than even dollar-based transactions. 

But while everything might seem rosy for Bitcoin and its contemporaries in the African continent, everything is not so rosy after all. The two biggest issues experienced currently are the abundance of Ponzi schemes that need to be tackled and secondly the lack of proper regulation that is deterring many aspirants to enter the market. Apart from that, the other challenges that people of Africa face are common ones. While developed nations are raging past with the use of 5G technology, many parts of Africa still does not have proper internet and electricity. 

But not everything is as bad as it seems. Arcane Research has highlighted the expansion of Bitcoin adoption owing to the current crisis. The report mentioned that the Bitcoin volume in the country, especially in Kenya, has seen a huge climb in 2020 from 2019. 

At present South Africa, Ghana and Nigeria are at the forefront in Bitcoin adoption but if trends continue the same way it will go a long way in ensuring that the entire continent will also embrace it. The basic knowledge and resorces around Bitcoin have to be stronger for that to take place.

Image Source – Coingape