The Federal Ministry of Finance in Nigeria has announced that it will enter into a partnership with the Securities and Exchange Commission to create a crypto framework. According to the Ministry, the new framework built from the partnership will help check the activities of crypto traders in the country.
Notably, Nigeria boasts of one of the biggest economies in the whole of Africa. Also, this new framework is coming off the back of the recent moves that were made by South Africa to regulate the activities of crypto traders in the country to check illegalities that are being carried out in the crypto sector.
The Nigerian government wants to venture into the blockchain space
The partnership between the Ministry of Finance and the SEC was revealed at an event organized by Mastercard in collaboration with The Economist Intelligence Unit. The event was tagged, ‘Fintech In Nigeria: State Of Play,’ and it took place in Lagos on November 24 saw various key stakeholders of the FinTech sector in attendance. In his statement at the event, Armstrong Takang, the special advisor to the ministry on ICT, noted that the Nigerian government had seen a new opportunity to move the country forward using crypto and blockchain adoption.
Furthermore, Takang said that the country hopes to create a regulation that will favor the crypto sector and its members. According to various media reports that made the rounds on September 14, the Nigerian Securities and Exchange Commission announced that it would classify digital assets as securities.
It will further classify trading in the crypto sector as a regulated activity under its rules. While the announcement was viewed as a turnaround for crypto in the country, members of the crypto community were still at a loss on the stand of the Central Bank of Nigeria on the update as the CBN failed to address the SECs update.
Crypto use now mainstream despite CBN’s silence on the recent SEC update
Even though the Central Bank of Nigeria remains mum on the update, crypto enthusiasts and users in the country can be assured that trading the digital assets will soon be recognized by the government as legal. Furthermore, Takang spoke son some issues that may arise regarding trading crypto in the African country, such as cross border implications.
He has noted that the Ministry of Finance is looking into it while strengthening its collaboration with the Ministry of Trade and the Nigerian customs. A larger percentage of Nigerians are presently turning to Bitcoin for succor after recent hardships caused by harsh conditions of the country’s dwindling economy.
Despite the fact that CBN’s stance over trading crypto is still unknown, crypto exchanges such as Binance has been able to secure partnerships with major CBN controlled banks in the country to provide citizens with access to buy crypto using their native fiat currency. With this, many Nigerians who wish to facilitate payments outside the country are now using crypto assets to carry out their payments.