The President of the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN), Mr. Obinna Iwuno, has said that Nigeria has set the pace for crypto regulation in Africa with the recent licensing of Quidax and Busha crypto exchanges by the country’s Securities and Exchange Commission (SEC).
Iwuno stated this in a chat with Nairametrics on the recent development in Nigeria’s crypto space.
According to him, the latest move by the SEC not only casts a positive light on Nigeria but also sets the stage for broader crypto regulations that the industry has been eagerly anticipating.
While noting that Nigeria currently accounts for over 60% of crypto adoption and trade volume in Africa, he said the country has set a good example for the continent through the issuance of crypto exchange licenses.
Nigeria’s crypto challenges
Iwuno noted that for years, Nigeria’s cryptocurrency sector has faced significant challenges, including the Central Bank of Nigeria’s (CBN) 2021 ban on crypto transactions, the subsequent arrests of crypto traders, and the ongoing controversy involving Binance officials.
- He said these events have contributed to a negative perception of Nigeria within the global crypto community, deterring potential investments and partnerships.
- Iwuno highlighted the far-reaching consequences of these issues, noting that many foreign entities interested in entering the Nigerian market have been discouraged due to the lack of regulatory clarity.
- According to him, a lot of entities and organizations that were interested in Nigeria have shunned the country due to the lack of regulatory clarity.
- He added that those operations they would have come to set up in Nigeria that would offer services, create jobs, and generate revenue for the government have been abandoned.
- However, he sees the SEC’s decision to license the crypto exchanges as a crucial step toward reversing this trend.
- The new licenses, he argues, solidify Nigeria’s position as a leader in innovation and a prime destination for crypto-related investments.
“So this step taken by the SEC is very important. The whole world should know that Nigeria has once again set the pace and taken its rightful position as the leader in Africa by issuing operating licenses, which is also a green light for regulations,” Iwuno stated.
Binance issue
While celebrating the SEC’s progress, Iwuno also urged the Nigerian government to resolve the ongoing issues with Binance officials, emphasizing the need for due process and adherence to global standards.
“With this win on our plate, the government needs to also add another win fast on the heels of this one by resolving the Binance officials issue.
“The law should be upheld and Nigeria protected without breaking the law in the process, nor violating human rights and the right to fair hearing and justice,” he said.
Backstory
Nigeria’s SEC on Thursday announced that it had granted an Approval-in-Principle to two crypto exchanges Quidax and Busha, giving them the status of legally recognised crypto trading platforms in the country.
- The two exchanges were approved under the Accelerated Regulatory Incubation Program (ARIP) program of the Commission.
- In addition to that, the Commission also admitted four companies to test their models and technology under its Regulatory Incubation (RI) Program.
- The four firms are digital assets offering platforms, which include Trovotech Ltd, Wrapped CBDC Ltd, Dream City Capital, and HousingExhange.NG Ltd.
- The SEC noted that the listed above firms are not the only entities that have applied to ARIP and the RI Program. It added that other applications received are being assessed and would be granted approval in principle on a case-by-case basis as they meet all its requirements.
