Lasberry Chioma Oludimu, Managing Director of Yellow Card Nigeria, stated that Nigeria surpasses Kenya in crypto regulation, currently engaged in a regulatory incubation phase managed by the SEC enabling exchanges to operate under supervision. This contrasts with Kenya’s efforts, which focus on legislation primarily aimed at taxation, lacking a robust regulatory framework. Nigerian regulatory success is attracting interest from other nations, exemplified by Yellow Card’s pursuit of licensing and recent acquisition of a license in South Africa.
During the LightSpark Developers Day in Lagos, Lasberry Chioma Oludimu, Managing Director of Yellow Card Nigeria, asserted that Nigeria leads African nations in the regulation of cryptocurrency. Despite regulatory challenges confronting crypto exchanges in Nigeria, Oludimu emphasized that the country is moving towards an effective regulatory framework unlike Kenya, which remains stagnant in its regulatory efforts. Nigeria currently implements a regulatory incubation phase allowing exchanges to operate under close supervision by the Securities and Exchange Commission (SEC), paving the way for eventual licensing.
Conversely, Kenya is still attempting to pass comprehensive cryptocurrency legislation, with recent proposals centered primarily on taxation rather than broad regulatory measures. The newly approved Capital Markets (Amendment) Bill, aimed at generating revenue through taxes imposed on cryptocurrency transactions, lacks a robust regulatory structure like that of Nigeria, where deeper oversight of crypto operations is evident.
Oludimu noted that the Nigerian regulatory framework is being observed and potentially emulated by countries such as Malawi, highlighting Nigeria’s proactive approach within the crypto space. Following a significant fundraising effort, Yellow Card is pursuing regulatory approval in Nigeria, which would enable the firm to expand its services while enhancing credibility. In parallel, Yellow Card recently secured a Crypto Asset Service Provider license in South Africa, reinforcing its commitment to compliance and customer service across the African continent.
The landscape of cryptocurrency regulation in Africa varies significantly among countries, with Nigeria emerging as a leader in establishing a framework for oversight. While many African nations grapple with basic regulatory structures, Nigeria’s Securities and Exchange Commission has introduced a stage termed regulatory incubation, allowing cryptocurrency platforms to develop under systematic scrutiny. In contrast, Kenya, despite significant cryptocurrency adoption among its populace, remains in the early stages of legislation focused largely on taxation rather than comprehensive regulatory guidelines. The disparity between Nigeria’s forward momentum and Kenya’s legislative delays highlights significant regional differences in approaching cryptocurrency regulation, with Nigeria setting a precedent other nations may follow.
In conclusion, Nigeria’s proactive regulatory approach to cryptocurrency places it ahead of Kenya and many other African countries. The establishment of a regulatory incubation phase under the SEC facilitates a collaborative learning environment beneficial for both regulators and crypto exchanges. While Kenya is making attempts to regulate through tax-focused measures, Nigeria’s comprehensive oversight positions it as a model in the continent’s crypto landscape. The pursuit of regulatory approval by firms like Yellow Card further reflects the evolving dynamics within this sector in Nigeria.
Original Source: technext24.com
