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In light of a recent U.S. court ruling classifying Bitcoin and Ethereum as commodities, stakeholders in Nigeria's crypto industry are advocating for the Nigerian Securities and Exchange Commission (SEC) to adopt similar regulatory measures.
Need for Clear Guidelines
Lucky Uwakwe, Chairman of the Blockchain Industry Coordinating Committee of Nigeria (BICCoN), emphasized the importance of establishing a clear definition for cryptoassets. He argued that clear regulations would guide creators on how to navigate compliance and help the public understand the categorization of various cryptocurrencies.
Uwakwe stated, "The Nigerian SEC should define a class of cryptoassets and explain why certain cryptocurrencies qualify as securities or commodities." He noted the potential impact of different consensus mechanisms, such as "proof of stake" versus "proof of work," on the classification of specific assets.
Existing Regulatory Landscape
Traditionally, Nigeria's Commodity Board has focused on physical commodities, showing limited interest in digital assets. This gap highlights the need for a dedicated regulatory approach to cryptocurrency.
Advocating for Individual Assessment
Oladotun Wilfred Akangbe, CMO of Flincap, pointed out that cryptocurrencies have emerged as valuable assets, and the SEC should concentrate on their use in fundraising activities like initial coin offerings (ICOs). He noted the diverse nature of cryptocurrencies and their implications for regulatory oversight.
Rume Ofi, a local crypto analyst, added that each cryptocurrency should be assessed individually to determine whether it qualifies as a security or commodity. This tailored approach could enhance regulatory clarity and market stability.
Path Forward
As Nigeria looks to establish a comprehensive regulatory framework for digital assets, treating #Bitcoin❗ and #etherreum as commodities could provide much-needed clarity in the growing market. Stakeholders hope that proactive regulation will foster innovation while protecting investors.
How will it impact Nigerian crypto community? comment below