Nigeria SEC: We have the best Bitcoin regulations in Africa – CoinGeek

Nigeria leads the African continent with digital asset regulations, a top official at the countrys securities watchdog recently claimed.

Speaking during 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 on crypto. Nigeria is leading in Africa in terms of making the rules and regulating into the digital asset space. Worldwide, we are one of those acknowledged to be looking keenly into that space, Obisan, the executive commissioner at the SEC,noted.

For the SEC, the most important things are practicability and implementability when it comes to digital asset regulations, not the stakes.

Obisan added that the SEC is molding its digital asset regulations on the example set by its counterpart in the United States, led by Commissioner Gary Gensler. And while Nigerias watchdog may be emulatingGenslers agency, the latter hasnt fared too well in the Bitcoin space. Granted, it has raked in billions of dollars in the past decade from enforcement actions against blockchain projects. However, it has often been criticized for its failure to issue regulatory clarity to the industry. Senator Elizabeth Warren (D-Mass.) recently blamed it for the billions of dollars lost by U.S. investors in the past few months.

One of the issues that have plagued the digital currency industry globally is the lack of clear distinction between the different financial regulators and their jurisdiction over the sector. In the U.S., the CFTC and SEC have found themselves with overlapping roles in the sector, confusing the stakeholders. Things arent much different in Nigeria, with the SEC and the Central Bank ofNigeriabeing the two predominant regulators for the sector.

Obisan broke down the distinction between the roles of the two watchdogs, noting that it all depends on how a digital asset is used.

When anything is a fiatfiat is moneywe use it as a means of exchange, that is an exclusive precedence from the Central Bank of Nigeria. But when it is used as an investment tool, then it falls squarely on our lap, he said.

Unlike the SEC, the Nigerian central bank isnt particularly fond of digital assets. In the past two years, it has made several moves meant to stifle the use of digital assets in Africas biggest economy and the biggest Bitcoin market on the continent. These includebarring banks from serving the industryandincentivizing Nigeriansto use avenues that compete directly with digital assets, such as cross-border money transfer services.

Watch: The BSV Global Blockchain Convention panel, Blockchain in Africa

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Nigeria SEC: We have the best Bitcoin regulations in Africa - CoinGeek