Nigeria is leading Africa in cryptocurrency regulation, with a structured incubation phase for crypto exchanges under the SEC’s supervision, surpassing Kenya’s limited regulatory framework focused primarily on taxation. Yellow Card Nigeria is seeking regulatory approval following successful fundraising and has secured a license in South Africa, reinforcing its commitment to compliance and operational integrity in the market.
Lasberry Chioma Oludimu, the Managing Director of Yellow Card Nigeria, stated that Nigeria is currently at the forefront of cryptocurrency regulation in Africa, significantly surpassing Kenya in this aspect. Despite facing substantial regulatory hurdles and challenges, Nigeria has initiated a regulatory incubation phase, allowing crypto exchanges to operate under the supervision of the Securities and Exchange Commission (SEC) while they prepare to obtain licenses. This process involves data-sharing and compliance assessments, where exchanges share crucial operational data to help regulators refine regulations.
In contrast, Kenya remains in the developmental stages of crypto regulation, struggling to pass comprehensive legislation. Although Kenya boasts the largest cryptocurrency market in East Africa, with around 8.5% of its population engaging in crypto transactions, its focus has primarily been on generating revenue through taxation rather than providing a regulatory framework. The recent Capital Markets (Amendment) Bill, approved by Kenya’s National Assembly, aims to tax crypto activities without establishing a robust regulatory environment.
Oludimu emphasized that Nigeria’s regulatory system is so advanced that it is being used as a model by other African nations, including Malawi. Yellow Card Nigeria is actively pursuing regulatory approval following its recent fundraising endeavors, indicating a commitment to compliance and enhanced service offerings. Additionally, the firm has recently secured a Crypto Asset Service Provider license in South Africa, further solidifying its commitment to regulatory compliance on the continent. The ongoing efforts demonstrate Nigeria’s proactive approach to fostering a secure and compliant cryptocurrency landscape.
The article discusses the differences in cryptocurrency regulation between Nigeria and Kenya, highlighting Nigeria’s more advanced status. Nigeria has initiated a regulatory incubation phase for cryptocurrency exchanges, allowing them to operate while preparing for licensing under the supervision of the SEC. This is contrasted with Kenya, which, despite having a significant crypto market, has limited regulatory measures focused mainly on taxation. The piece also features insights from Lasberry Chioma Oludimu, Managing Director of Yellow Card Nigeria, on Nigeria’s leading position and the efforts of Yellow Card to obtain regulatory approval.
In conclusion, Nigeria has established itself as a leader in crypto regulation within Africa, implementing a structured regulatory framework that supports the operation of cryptocurrency exchanges. Meanwhile, Kenya is still navigating the legislative landscape, focusing on taxation rather than comprehensive regulation. Yellow Card Nigeria’s active pursuit of regulatory approval reflects the ongoing evolution and emphasis on compliance within the country’s crypto market, further positioning Nigeria as a pivotal player in the continent’s cryptocurrency ecosystem.
Original Source: technext24.com
