Crypto News: Nigeria Introduces National Blockchain Policy to Provide Regulatory Clarity for Blockchain Industry and Pave the Way for Web3 Adoption
Nigeria, the most populous country in Africa, has introduced a National Blockchain Policy to provide regulatory clarity to its blockchain industry and lay the foundation for the adoption of web3 in the country.
This announcement comes just a week after the Securities and Exchange Commission (SEC) revealed plans to license fintech firms to issue asset-backed tokens. Professor Isa Pantami, Nigeria’s Minister of Communications and Digital Economy, disclosed during a Federal Executive Council meeting on May 3 that the new blockchain policy has been approved by the government.
The policy is a product of consultations with 56 institutions and entities within Nigeria and aims to institutionalize blockchain technology and its components in the country’s economy.
According to the Punch, a local newspaper, Pantami stated that the country’s Security Council has mandated relevant regulatory watchdogs to collaborate with the National Information Technology Development Agency (NITDA) to develop a regulatory framework for blockchain technology across all sectors of the economy.
While the new policy is a positive development for Nigeria’s blockchain industry, it remains unclear how the government will handle bitcoin (BTC) and other blockchain-based assets.
The Central Bank of Nigeria (CBN) has prohibited financial institutions from facilitating crypto transactions since 2021. It remains to be seen whether Nigeria will adopt a relaxed and liberal approach to crypto regulation or impose capital gains taxes on bitcoin and other crypto assets, similar to India.
Nigeria’s introduction of the National Blockchain Policy is a significant step towards the country’s blockchain industry’s regulatory clarity and institutionalization.
However, the government’s stance on bitcoin and other crypto assets remains uncertain, leaving investors and crypto enthusiasts to wait for further clarification on Nigeria’s crypto regulations.
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