Nigeria’s
once
frosty
relationship
with
crypto
appears
to
be
entering
a
cautious
thaw.

Emomotimi
Agama,
Director-General
of
the
Nigerian
Securities
and
Exchange
Commission
(SEC),
recently
made
comments
suggesting
a
shift
away
from
the
government’s
hardline
stance
against
digital
assets.

This
comes
after
months
of
regulatory
conflict
that
saw
the
likes
of
crypto
giant
Binance
face
intense
scrutiny,
service
restrictions,
and
even
executive
detention.
The
government’s
initial
approach
focused
on
curbing
the
influence
of
crypto,
citing
concerns
about
market
manipulation
and
investor
protection.

 

The
Allure
Of
Crypto:
A
Boon
For
The
Unbanked?

Agama’s
remarks,
delivered
at
a
financial
conference,
acknowledged
the
undeniable
reality
of
crypto’s
presence
in
Nigeria.
He
highlighted
the
estimated

$400
million
Nigerian
crypto
market
and
the
staggering
statistic
–
over
a
third
(33.4%)
of
Nigerians
own
or
use
cryptocurrencies.

This
widespread
adoption,
Agama
argued,
presents
an
opportunity.
Nigeria
has
a
significant
unbanked
population
(over
38
million
adults).
Crypto,
with
its
potential
for
efficient
and
cost-effective
transfers,
could
play
a
role
in
financial
inclusion,
streamlining
remittance
services
for
Nigerians
receiving
money
from
abroad.
Bitcoin
transactions,
Agama
emphasized,
can
reportedly
slash
remittance
fees
by
up
to
50%.

This
newfound
pragmatism
marks
a
clear
departure
from
the
government’s
earlier
blanket
opposition.
Analysts
see
Agama’s
comments
as
a
potential
prelude
to
a
more
nuanced
regulatory
framework,
one
that
acknowledges
the
risks
of
crypto
while
recognizing
its
potential
benefits
for
the
Nigerian
financial
landscape.

 

Optimism
With
Caution:
Legal
Hurdles
Remain

Despite
the
shift
in
tone,
the
path
towards
a
crypto-friendly
Nigeria
is
not
without
obstacles.
The

ongoing
legal
case
against
a
Binance
executive
on
money
laundering
charges
casts
a
shadow
over
the
industry’s
future.
Additionally,
restrictions
on
accessing
crypto
websites
for
Nigerian
investors
remain
in
place.

These
lingering
issues
serve
as
a
reminder
that
the
government
hasn’t
entirely
abandoned
its
cautious
approach.
The
coming
months
will
likely
see
a
period
of
negotiation
and
policy
formulation.
While
the
SEC
Director’s
remarks
offer
a
glimmer
of
hope,
the
full
picture
of
Nigeria’s
crypto
future
remains
to
be
developed.

A
Continent
In
Flux:
Nigeria’s
Choice

Nigeria’s
evolving
stance
on
crypto
reflects
a
broader
trend
across
Africa.
The
continent
boasts
the
world’s
fastest-growing
crypto
market,
driven
by
factors
like
limited
access
to
traditional
financial
services
and
a
young,
tech-savvy
population.
However,
governments
grapple
with
the
same
issues
–
the
potential
for
financial
crime,
market
volatility,
and
the
need
for
consumer
protection.

Nigeria’s
eventual
decision
on
crypto
regulation
will
be
closely
watched
by
other
African
nations.
Will
it
embrace
crypto
and
create
a
framework
that
fosters
innovation?
Or
will
it
prioritize
stricter
controls,
potentially
stifling
this
burgeoning
asset
class?
The
answer
to
this
question
could
have
a
ripple
effect
across
the
continent,
shaping
the
future
of
African
finance.

 

Featured
image
from
Shutterstock,
chart
from
TradingView

Go to Source
Author: Christian Encila

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