As Nigeria seeks to become a go-to destination for crypto firms, the regulator plans to create a friendly environment for digital assets. A few days ago, the Nigerian Central Bank (CBN) lifted the ban on bank involvement in crypto activities.
The lifting of the ban on digital assets in Nigeria sparked excitement among the crypto community.
Crypto Adoption Expected to Increase in Nigeria
In an advanced report, the prominent crypto exchange in West Africa, Yellow Card, demonstrated that the new provision for digital assets will support the growth of the crypto sector.
The exchange was pleased to state that the abolition of prohibitive measures on crypto will support the responsible integration of digital assets into traditional finance. This implies the new rule will help mainstream crypto adoption in Nigeria.
A statement from the chief data protection officer at Yellow Card, Lasbery Oludimu, revealed that the peer-to-peer (P2P) market had gained dominance in the digital sector during the ban.
He envisages that removing the bank’s involvement in crypto activities will foster innovation in the crypto sector. The official predicts the innovation will drive fierce competition in the Nigerian crypto sector.
Oludimu added that upholding the crypto ban in West Africa will trigger a surge in crypto-related activities. This implies that Nigeria will witness increased crypto and blockchain use cases.
The official predicted that the increase in crypto activities in Nigeria will oblige the regulators to develop regulatory clarity for digital assets. Eliminating the crypto ban in Nigeria challenges the local exchange and token issuers to operate compliantly.
However, Oludimu noted that with the changes in the financial landscape, the reentry of banks into the digital sector might create unhealthy competition among the industry leaders.
Industry Leaders Aim to Bring Innovation to the Crypto Sector
The executive predicts that with the fierce competition, crypto firms and financial institutions will focus on improving the efficiency of transactions.
In the latter, the official stated that the new crypto rule will encourage industry leaders in the traditional finance industry to collaborate with the crypto firms.
He anticipates that the collaboration between the traditional finance and crypto sectors will impact the responsible integration of emerging technologies into the digital space.
The executive added that with the new rules in Nigeria developers will drive innovation in the crypto sector. He believes the new crypto regulation will provide licensed businesses such as Yellow Card with a conducive business environment.
In his address, Oludimu stated that the changes in the regulatory approach for crypto assets in West Africa would restore the integrity of the financial sector and boost customers’ confidence.
Nigeria Seeks to Create a Friendly Environment for Digital Assets
A review of the Yellow Card website demonstrated that the exchange has expanded its customer base over the past few months. This implies that the friendly crypto regulation has enabled Yellow Card, among other companies, to onboard more users.
After attaining the desired customer base, the Yellow Card team revealed plans to partner with forward-thinking individuals and business entities. In an earlier report, the Yellow Card team announced plans to support the advancement of the crypto sector in Nigeria through innovation and creativity.
According to Chainanalysis Nigeria ranks as the leading country with the highest crypto savvy population in Africa. The report indicated that crypto activities in Nigeria have increased year-over-year. With the exciting growth of the Nigerian crypto sector, the regulator has focused on enforcing friendly policies for digital assets.
In an interview with the CBN officials, the bank stated that the global trends forced the regulators to reverse their anti-crypto move and regulate the digital sector. The CBN report demonstrated that the Financial Stability Board (FSB) and officials from the International Monetary Authority (IMF) had advised Nigeria to focus on supervising the crypto industry. The global regulators stated that the crypto sector must be managed rather than banned.
