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The Digital Currency Coalition (DCC), comprising crypto asset practitioners, blockchain innovators, and founders, has emphasized the critical need for Nigeria’s federal government to develop a comprehensive policy and regulatory framework for the country’s crypto ecosystem.
In a statement released on Monday, the coalition stressed that such regulation is vital to address concerns related to financial stability, market integrity, and investor protection, among other risks associated with crypto assets.
The DCC expressed its readiness to collaborate with the government, emphasizing that regulating the crypto industry would strengthen the country’s economy and aid in combating financial crimes, particularly money laundering through digital assets.
Despite the absence of formal regulation, multiple reports indicate that Nigerians are among the world’s leading users and traders of cryptocurrencies. A recent report by Trading Browser revealed that in 2022, 45% of Nigeria’s population either used or owned cryptocurrencies.
In their statement, the DCC highlighted their commitment to self-regulation and compliance with Financial Action Task Force (FATF) standards for Anti-Money Laundering, including enforcing the travel rule among their members. They emphasized their belief in the importance of a well-regulated digital currency space for Nigeria’s economic future and expressed their readiness to support the government in this regulatory journey under President Tinubu’s leadership.
The DCC also commended the Nigerian government’s participation in the 18th G20 summit held in New Delhi, India, which included discussions on digital currency regulation. They appreciated the regulatory discussions led by President Bola Tinubu and Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani. These discussions aligned with the DCC’s longstanding call for a structured digital currency ecosystem and were informed by a key document from the International Monetary Fund (IMF) and Financial Stability Board (FSB) titled “IMF-FSB Synthesis Paper: Policies for Crypto-Assets.”
It’s worth noting that while the Federal Executive Council, during the previous administration of Muhammadu Buhari, approved Nigeria’s National Blockchain Policy on May 3, 2023, the policy has not yet been implemented. The policy aimed to create a blockchain-powered economy supporting secure transactions, data sharing, and value exchange to enhance innovation, trust, growth, and prosperity for all.
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