Lasberry Chioma Oludimu, MD of Yellow Card Nigeria, asserts that Nigeria leads Africa in cryptocurrency regulation compared to Kenya. Nigeria is implementing a regulatory incubation phase for exchanges under the SEC, while Kenya lacks a robust framework and focuses primarily on taxation. Yellow Card aims to secure regulatory approval in Nigeria to enhance service credibility and recently obtained a crypto service license in South Africa.
Lasberry Chioma Oludimu, Managing Director of Yellow Card Nigeria, has stated that Nigeria is significantly more advanced than Kenya in terms of cryptocurrency regulation. Speaking at the LightSpark Developers Day in Lagos, Oludimu mentioned that while Nigeria faces its own regulatory challenges, it has established a regulatory framework characterized by what she refers to as a “regulatory incubation” phase. This allows cryptocurrency exchanges in Nigeria to apply for operational supervision from the Securities and Exchange Commission (SEC) before receiving a full license. In contrast, Kenya is still attempting to pass legislation to regulate the crypto space and has yet to establish any sandbox environment or effective regulatory framework.
Kenya, recognized as East Africa’s largest cryptocurrency market with around 8.5 percent of its population engaged in cryptocurrencies, has recently passed amendments aimed primarily at generating revenue through taxation of crypto transactions. The amendments impose capital gains taxes and require disclosure of holdings to the Kenya Revenue Authority. Unlike Nigeria, which is seeking to provide comprehensive regulatory oversight, Kenya’s approach has focused on revenue generation rather than establishing a robust regulatory framework.
Oludimu further asserted that Nigeria’s regulatory measures are being emulated by other African nations, citing Malawi’s central bank’s interest in adopting Nigeria’s successful regulatory model. Yellow Card is currently in the process of obtaining regulatory approval to enhance its credibility in Nigeria and offer a broader range of services. Recently, the company secured a Crypto Asset Service Provider license in South Africa, highlighting its commitment to regulatory compliance across the continent.
The regulation of cryptocurrency presents complex challenges and opportunities for African nations. As the market for cryptocurrencies grows, each country’s approach to regulation is crucial in enhancing or hindering the industry’s development. Nigeria and Kenya represent two distinct paths in this regard, with Nigeria establishing a more structured regulatory environment while Kenya is beginning to explore legislative measures mainly focused on taxation. The disparity between the two countries showcases the varying levels of regulatory commitment and preparedness across Africa.
In conclusion, Nigeria’s proactive approach to cryptocurrency regulation, characterized by a structured “regulatory incubation” phase overseen by the SEC, positions it ahead of Kenya, which is still working to establish its regulatory framework. The focus on comprehensive oversight rather than mere tax collection in Nigeria highlights its commitment to fostering a conducive environment for cryptocurrency exchanges. This regulatory clarity not only benefits Nigeria but also sends a positive signal to neighboring countries looking to develop their own frameworks.
Original Source: technext24.com
