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Africa will start regulating cryptocurrency in the country

According to the Securities and Exchange Commission of Nigeria, they will start regulating the flow of digital assets in the country.

In a statement, they said that both issuers and sponsors shall follow the commission’s regulations and rules. Under this clause, token offerings, ICOs, and security tokens will be ranked under the investment schemes. Meanwhile, crypto and blockchain-related companies have to register with the SEC if they want to start a business in the country.

According to Changpeng Zhao, the CEO of Binance, Africa is a place where cryptocurrency’s potentials can be fully utilised.

While Africa welcomes the progress of digital assets in the country, the government said that the legal framework implemented shall be followed to create a balanced ecosystem for both customers and investors. Moreover, these clauses shall ensure that everything will be carried out within ethical standards.

‘The general objective of the regulation is not to hinder technology or stifle innovation, but to create standards that encourage ethical practices’, said the SEC regulator.

‘We view the entire African market as a really key market,’ he said. ‘I don’t think it’s very easy to buy cryptocurrencies in Africa right now overall, so we want to help improve that situation’.

Meanwhile, CEO of Yellow Card, Chris Maurice agreed with Chaopeng Zhao’s sentiments about Africa’s progress in cryptocurrency, saying, ‘In terms of the crypto scene and everything, things are growing very rapidly across the continent, but specifically in Nigeria, South Africa, Ghana, and Kenya’.

According to surveys, data shows that Africa is significantly increasing in crypto activity since September. The percentage went up by 50% throughout the continent. Experts say that the development of cryptocurrencies in the country can improve issues in cross-border transactions.

According to Michelle Chivunga, CEO of the Global Policy House, Africa can harness the power of blockchain into different sectors to ease the lives of people.

‘Countries in Africa including Ghana are looking into using blockchain for land registry and many countries are using digital identity, provenance in supply chains, healthcare and financing. E-commerce and fintech are major drivers of the digital economy in Africa. I see this growing and paving the way for more blockchain activity,’ Chivunga says.

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