Bitcoin News

Nigeria SEC: We have the best Bitcoin regulations in Africa

A top official from Nigeria’s securities watchdog claimed that Nigeria is the leader in Africa for digital asset regulations.

Dayo Obisan stated that the Securities and Exchange Commission had made significant strides in the regulation of the digital asset market. He discussed the division of powers and responsibilities of the Central Bank of Nigeria and the SEC in relation to digital assets.

We released additional rules about crypto a few months ago. Nigeria leads Africa in terms of regulating the digital asset space and making rules. We are recognized worldwide as being keenly interested in that space,” Obisan, the executive Commissioner at the SEC, stated.

The most important aspects for the SEC when it comes digital asset regulations are practicality and implementationability, not the stakes.

Obisan said that the SEC is following the lead of its American counterpart, Commissioner Gary Gensler. While Nigeria’s watchdog might be following the lead of Gensler’s agency in the digital asset space, it hasn’t fared well.

It is true that it has made billions from its enforcement actions against blockchain projects over the past decade. It has been criticised for failing to provide regulatory clarity to the sector.

Senator Elizabeth Warren (D.Mass.) Recent reports have placed blame on it for the loss of billions by U.S. investors over the last few months.

The lack of clarity between different financial regulators and their jurisdiction over digital currency has been a problem in the global market. The CFTC in the USA and the SEC in the U.S.

have had to play overlapping roles in the sector, which has caused confusion for stakeholders. The situation is similar in Nigeria with the SEC, the Central Bank of Nigeria acting as the main regulators of the sector.

Obisan explained the difference between the two roles and said that it all depends upon how a digital asset was used.

“When anything is fiat-fiat it is money-we use that as a way of exchanging, that is an exclusive precedence of the Central Bank of Nigeria. He said that if it is used to invest, it will fall on our shoulders.

The Nigerian central bank doesn’t like digital assets, unlike the SEC. It has taken several steps to restrict the use of digital assets in Africa, the largest economy on the continent and the largest Bitcoin market. These include preventing banks from servicing the industry, and encouraging Nigerians use of avenues that directly compete with digital assets such as cross-border money transfers services.