The Securities and Exchange Commission, a federal agency that regulates the Nigeria’s capital market is set to provide a new regulatory framework to boost credibility, trust and further adoption in the crypto space.
The crypto industry in Nigeria has greatly expanded
Special adviser in the Finance Ministry, Armstrong Takang while speaking at the Fintech in Nigeria State Play Event, reiterated the need for a regulation in the blockchain field.
The SEC in September announced that it was creating a regulatory environment to protect the interest of crypto investors and ensure that the industry is transparent. However, it’s aim is not to hinder technology but rather create standards that promote fraud free practices in the industry.
In July, Nigeria with other African countries had their weekly Bitcoin trading volumes exceed $1 million showing bigger and better adoption in the blockchain sector.
In order for these transactions to be safe and ethical, there is need for the new regulatory guidelines being formulated.
Impact of Bitcoin in fighting inflation
Nigerians especially youths, are using Bitcoin to deal with inflation which was caused by the covid-19 pandemic and recent devaluation of the nation’s currecy. Naira which now sells for over 480NGN per USD used to be more valuable before the pandemic and before it was devalued in 2018.
The National Information Technology Development Agency (NITDA), sees cryptocurrency as a means with which the country can generate 6 to 10 billion USD in the next ten years because Nigeria have a huge potential in the payment and financial services sector.
Nigeria seeks to keep being a giant of crypto and blockchain.