- Nigeria has a 6.50% crypto-ownership charge, signaling fast progress amid regulatory challenges
- Nigeria’s SEC has now carried out new guidelines and ARIP to safe digital asset markets successfully
Cryptocurrency adoption is on the rise globally, and up to date knowledge from Triple.A confirms this pattern. In actual fact, as of 2024, an estimated 6.8% of the world’s inhabitants owns cryptocurrencies, translating to over 560 million customers worldwide.
Supply: Triple.A
Among the many nations making vital strikes on this entrance, Nigeria stands out with a cryptocurrency possession charge of 6.50%. That is one other signal of Nigeria’s rising acceptance and affect within the world crypto panorama.
Nigeria’s SEC strikes in the direction of cryptocurrency adoption
Nigeria’s Securities and Alternate Fee (SEC) is within the information now after it up to date its rules on Digital Asset Issuance, Providing Platforms, Alternate, and Custody.
In a public statement, the SEC defined that these amendments are geared toward constructing a stronger regulatory framework tailor-made to the particular challenges of digital asset markets.
“The aim of the modification is to broaden the scope of regulation consistent with the present realities.”
These revised guidelines wish to handle digital asset complexities and dangers, guaranteeing a safe, well-regulated atmosphere for all stakeholders.
Is there extra to it?
Moreover, as a part of its efforts to control the cryptocurrency market, the Nigerian SEC has additionally launched the Accelerated Regulatory Incubation Programme (ARIP) for digital belongings service suppliers (VASPs). Right here, ARIP offers a structured course of for VASPs to adjust to the brand new regulatory necessities.
To simplify the method, the SEC has additionally established a devoted utility window on its ePortal for VASPs collaborating in this system, with a compulsory completion of the onboarding course of inside 30 days from the round’s issuance.
This initiative would streamline the compliance course of and make sure that VASPs function inside the up to date regulatory framework.
Nigeria’s long-standing efforts
Right here, it’s necessary to notice that regardless of previous regulatory challenges, Nigeria has seen significant growth in cryptocurrency adoption.
In December 2023, the Central Financial institution of Nigeria (CBN) lifted its 2021 ban on crypto transactions, introducing new pointers to fight cash laundering and terrorist financing. These guidelines now mandate VASPs to stick to Know Your Buyer (KYC) necessities, however have additionally raised issues about consumer privateness.
Nonetheless, Nigeria has grow to be a frontrunner in peer-to-peer (P2P) crypto buying and selling quantity and general transaction progress, fueled by the recognition of stablecoins as a hedge towards inflation.
Ought to the U.S be taught from Nigeria?
With the crypto market evolving, Nigeria’s regulatory strategy serves as a mannequin for different nations like america. Particularly since they’re additionally navigating digital asset regulation amid fast adoption.
Robinhood CEO Vlad Tenev in all probability put it finest when he claimed,
Supply: Vlad Tenev/X
