Nigeria has one of the best crypto regulation regimes in Africa, towering above countries like Kenya, says Managing Director of Yellow Card Nigeria, Lasberry Chioma Oludimu.
Explaining the new regime introduced by the Securities Exchange Commission (SEC Nigeria), Oludimu noted that all exchanges need to do is to apply and when they receive an approval-in-principle, they would then operate under the supervision of the Securities and Exchange control for a period of time.
“If the SEC is comfortable with what you have done, they will then allow you to apply for a licence.
So the regulatory incubation phase is like a learning ground and also a data-sharing opportunity where the exchanges will share data with the regulator which will also help the regulator to find the best way to regulate the space.
So that is where we are in terms of regulation in Nigeria,” she said.
According to the executive, Kenya lags behind Nigeria in terms of crypto regulation, and is still trying to pass a regulation bill in parliament.
“They have not gotten to where we are. We are actually ahead of them. They do not have a sandbox environment, they do not have any regulation or any implementation. That is why I said we are way above Kenya with what we are doing in Nigeria.
In this space, in terms of crypto regulation, Nigeria is the big brother because we have gone way ahead of most other African countries,” she added.
Two Nigerian-owned crypto exchanges, Busha and Quidax, were the first to receive licenses from the Nigerian SEC in 2024, marking the beginning of a new phase of regulation in the country’s crypto space.
🇳🇬REGULATION | Nigerian Crypto Exchange, Quidax, Receives Provisional Operating License from SEC Nigeria
With the license granted by the Nigerian SEC, Quidax is now able to collaborate with banks and other financial institutions, subject to the Central Bank of Nigeria’s… pic.twitter.com/4gPpLyJi4z
— BitKE (@BitcoinKE) August 29, 2024
Yellow Card, which has received a Crypto Asset Service Provider (CASP) licence in South Africa, is among the firms awaiting approval from the SEC Nigeria having applied through the Accelerated Regulatory Incubation Programme (ARIP).
🇿🇦REGULATION | African Stablecoin On/Off Ramp, @yellowcard_app, Secures Category 1 Crypto Asset Service Provider Licence in South Africa
A CAT I license is the standard for a CASP in South Africa to provide advice or exchange services to its customers.https://t.co/6s8jSjVg3P pic.twitter.com/0fSP1mG8cb
— BitKE (@BitcoinKE) November 20, 2024
SEC Director-General, Dr Emotimi Agama, has however recently warned that not all firms that applied for approval will be approved.
“Certainly, not all of them will meet the requirements. The commission will keep providing clarity to some knotty areas to assist in the process,” he said.
He also reiterated the commission’s commitment to establish the best regulatory regime across the continent.
“We are trying to ensure that at the end of the day, as a country, we will stand out in the regulation of this space. Beyond any doubt, this space is the future and for us as Nigerians, we have embraced it,” he said.
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