- Blockchain Industry Coordinating Committee of Nigeria has urged the Nigerian SEC to create a tailored regulatory framework for Bitcoin and Ether.
- Nigeria’s Commodity Board, which currently focuses on physical commodities, may need to shift its focus to include digital assets due to their growing significance.
Nigerian stakeholders in the crypto sector are pushing for the regulation of Bitcoin and Ether as commodities following a recent court ruling in Illinois, which classified these cryptocurrencies as commodities, Cointelegraph reported.
The Blockchain Industry Coordinating Committee of Nigeria has urged the Nigerian Securities and Exchange Commission (SEC) to adopt a customized regulatory framework for Bitcoin and Ether. They argue that this move would reflect the unique characteristics of these digital assets and provide much-needed clarity.
Lucky Uwakwe, the Chairman of the Blockchain Industry Coordinating Committee of Nigeria, emphasized the importance of clear definitions in crypto asset regulation. Speaking to the media publication, Uwakwe mentioned that the Nigerian SEC should consider making rules that define the asset class of crypto assets and explain to the public how such crypto qualifies to be called securities or commodities.
Uwakwe highlighted that while the US SEC and the Commodity Futures Trading Commission (CFTC) agree on classifying Bitcoin and Ether as commodities, the distinction between proof-of-stake (PoS) and proof-of-work (PoW) protocols could influence the classification of specific crypto assets.
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Advocacy for Individual Scrutiny of Cryptocurrencies
Currently, Nigeria’s Commodity Board has focused primarily on physical commodities such as cash crops and agricultural products, showing little interest in digital commodities. This traditional focus could shift to accommodate the growing significance of digital assets.
This development comes amid a West African nation’s crackdown on the top cryptocurrency exchange, Binance. A tax evasion case involving the exchange is scheduled for a hearing in October. The matter had been scheduled for May but was postponed reportedly due to procedural issues. This delay is reportedly because the crypto exchange has not been formally served with the charges, complicating the legal proceedings.
The trial, which involves claims of tax evasion by Binance and its executives Tigran Gambaryan and Nadeem Anjarwalla, was delayed because the Federal Inland Revenue Service (FIRS) had not served the exchange with the charges.
Early this year, Nigeria announced that it wanted Binance CEO Richard Teng to appear before its officials to answer concerns about its operations in the country. The officials are particularly seeking answers on $26 billion, which it believes comprises suspicious fund flows.
