Nigeria SEC: We have the best Bitcoin regulations in Africa
Nigeria leads the African continent in digital asset regulations, a top official at the country’s securities watchdog recently claimed.
Speaking at a local industry event, Dayo Obisan claimed that the Securities and Exchange Commission (SEC) had made great strides in regulating the digital asset space. He delved into the separation of powers and responsibilities between the Central Bank of Nigeria (CBN) and the SEC regarding digital assets.
“Months ago we still released additional rules for crypto. Nigeria is a leader in Africa in terms of making the rules and regulating into the digital asset space. Worldwide, we are one of those who are recognized to look closely at this area, noted Obisan, executive commissioner of the SEC.
For the SEC, the most important things when it comes to digital asset regulations are feasibility and implementability, not effort.
Obisan added that the SEC is building its digital asset regulations on the example set by its counterpart in the United States, led by Commissioner Gary Gensler. And while Nigeria’s watchdog may emulate Gensler’s agency, the latter has not fared so well in the Bitcoin space. True, it has raked in billions of dollars over the past decade from enforcement actions against blockchain projects. However, it has often been criticized for its failure to provide regulatory clarity to the industry. Senator Elizabeth Warren (D-Mass.) recently blamed billions of dollars lost by American investors in recent months.
One of the problems that has plagued the digital currency industry globally is the lack of clear separation between the various financial regulators and their jurisdiction over the sector. In the US, the CFTC and SEC have found themselves with overlapping roles in the sector, confusing stakeholders. Things are not much different in Nigeria, with the SEC and the Central Bank of Nigeria being the two dominant regulators of the sector.
Obisan broke down the distinction between the roles of the two watchdogs, noting that everything depends on how a digital resource is used.
“When something is a fiat – fiat is money – we use it as a medium of exchange, it is an exclusive prerogative of the Central Bank of Nigeria. But when it is used as an investment tool, it falls right into our lap,” he said.
Unlike the SEC, the Nigerian central bank is not particularly fond of digital assets. Over the past two years, it has made several moves intended to stifle the use of digital assets in Africa’s largest economy and the largest Bitcoin market on the continent. These include barring banks from servicing the industry and encouraging Nigerians to use avenues that compete directly with digital assets, such as cross-border money transfer services.
See: BSV Global Blockchain Convention panel, Blockchain in Africa
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