A panel discussion on the future of digital asset regulation in Nigeria took place at the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN)’s Digital Assets Summit 2023 in Abuja. The panel, titled “The Future of Digital Assets: Regulatory Uncertainty and the Way Forward,” aimed to address the slow implementation of digital asset regulation and blockchain policy in the country.
During the discussion, Adedeji Owonibi, CEO of Convexity, emphasized the significance of the developmental regulation established by The National Information Technology Development Agency (NITDA). Owonibi stated that this step should have been taken by the Central Bank of Nigeria (CBN) in 2021 instead of cutting ties between cryptocurrency exchange firms and local banks. He believed that the NITDA’s regulation is a crucial move towards creating a favorable environment for the blockchain and crypto industry.
Preye Itonyo, the deputy director of NITDA’s Digital Economy Development Department, acknowledged the strides made by NITDA in crafting a blockchain policy. However, he highlighted the regulatory challenge posed by the decentralized nature of blockchain, which has resulted in a lack of understanding of blockchain and cryptocurrency concepts in Nigeria. This lack of understanding was cited as a key factor behind the 2021 crypto/traditional finance ban.
Nigeria has been recognized as the most cryptocurrency-aware population in the world, with 90% of respondents in a global survey expressing interest in investing in cryptocurrencies in the next year. However, to ensure security and promote scalability in the industry, there is a need for regulatory measures.
In response to these concerns, Itonyo revealed that the already established blockchain policy is Nigeria’s first step in ensuring the safety and protection of crypto investors. He also disclosed that NITDA has formed a steering committee, consisting of representatives from the CBN and the Nigerian Communications Commission, to facilitate the implementation strategies of the national blockchain policy.
The panel discussion shed light on the challenges and potential solutions surrounding digital asset regulation in Nigeria. The NITDA’s efforts in developing a blockchain policy were commended for creating a favorable environment for the industry. However, the decentralized nature of blockchain remains a hurdle that needs to be overcome through education and awareness.
Nigeria’s cryptocurrency-aware population indicates a promising market for the industry, but regulatory measures are essential to safeguard investors and encourage scalability. The collaboration between NITDA, the CBN, and the Nigerian Communications Commission shows a concerted effort to establish effective implementation strategies for the national blockchain policy.
Overall, the panel’s discussion provided valuable insights into the current state of digital asset regulation in Nigeria and highlighted the importance of addressing regulatory uncertainty to foster a thriving blockchain and crypto industry in the country.
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