Nigeria’s Federal Ministry of Finance has talked with the country’s securities regulator to develop a new framework for blockchain and cryptocurrencies, a move that could accelerate adoption in Africa’s largest economy.
It has been reported that the Ministry of Finance is working with the Abuja-based Securities and Exchange Commission (SEC) to “provide a regulatory environment for blockchain” and digital assets.
However, digital assets are recognized as commodities and governed by appropriate securities law in Nigeria following the SEC’s stunning edict on the matter back in September.
Will Africa's largest economy become a global leader in crypto adoption? https://t.co/vZpvQxQqcM — Cointelegraph (@Cointelegraph) November 24, 2020
The SEC said that its role was to regulate this new asset class, not hinder adoption or innovation.
The SEC Nigeria stated:
“The general objective of regulation is not to hinder technology or stifle innovation, but to create standards that encourage ethical practices that ultimately make for a fair and efficient market.”
Likewise, Bitcoin (BTC) and other cryptocurrencies are witnessing growing adoption in Nigeria as the country struggles with capital controls, devaluation, and new protests targeting police corruption.
Thus, Nigerian officials appear keen on adopting blockchain, with hopes of generating $10 billion in revenue from the new technology by 2030.