Nigerian stakeholders are advocating for the Nigerian Securities and Exchange Commission (SEC) to classify Bitcoin and Ether as commodities. This recommendation follows a recent court ruling in Illinois that categorized these digital assets as commodities, which could serve as a precedent for Nigeria’s regulatory framework.
Lucky Uwakwe, chairman of the Blockchain Industry Coordinating Committee of Nigeria (BICCoN), emphasized the importance of clear classification for crypto assets to ensure regulatory clarity. He stated that defining the asset class of cryptocurrencies would guide creators on where to seek appropriate regulation.
Clear Guidelines Needed
Uwakwe highlighted that by adopting a commodities classification, Nigerian regulators could provide a more tailored regulatory framework that aligns with the unique characteristics of these digital assets. He noted that the distinction between proof–of–stake (PoS) and proof–of–work (PoW) protocols could influence the classification of specific cryptocurrencies.
“The Nigerian SEC should consider making rules that clearly define the asset class of crypto assets or break respective crypto into asset classes and explain to the public how such crypto qualifies to be called securities or commodities,” Uwakwe said.
By aligning with global perspectives, such as those of the U.S. SEC and the Commodity Futures Trading Commission (CFTC), Nigeria can ensure its regulatory framework is in step with international standards, providing greater clarity and stability in the crypto market.
Summary Review: Adopting a clear and well–defined regulatory approach to cryptocurrencies like Bitcoin and Ether could benefit Nigeria by providing greater transparency and stability in the digital asset market. This move could also help in fostering innovation and growth within the country’s burgeoning blockchain sector while aligning with global regulatory standards.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
