Cryptocurrency Regulation: ACCI commends SEC, calls for more consultations

The President, Abuja Chamber of Commerce and Industry (ACCI), Dr Al-Mujtaba Abubakar has commended the Securities and Exchange Commission (SEC) for issuance of regulations governing cryptocurrency asset while calling on the agency to embark on further stakeholder consultation.

The ACCI Chief recalled that the National Policy Chamber of ACCI last week held a roundtable on the subject of block chain/cryptocurrency policy framework which was attended by stakeholders from private and public sectors.

Dr Abubakar noted that the Chamber has perused the guidelines issued by the SEC and noted the requirements and conditionality for operators to fulfil.

“We want you to note that why the SEC may have several reasons for the stringent conditionality, we are also of the view that the requirements may not only be difficult to fulfil for many operators but may also further drive the cryptocurrency operators underground in the country.” 

He said the purpose of the regulatory framework should be to inclusively integrate all operators into the mainstream of crypto digital asset operation as a way of tapping into the potential of the sector for boosting business operations and for growing the National Gross Domestic Products.

“We also want to note that SEC would have to embark on another round of consultation as new development have arisen which may call to question the applicability and efficiency of those stipulations contained in the regulations issued.”

Regulatory guidelines

Dr Abubakar said based on the outcome of the roundtable held last week on this subject of Cryptocurrency operations in Nigeria, participants specifically called on the regulators to observe the following in setting up a regulatory framework for block chain/cryptocurrency operations in Nigeria.

• The government should do more to support blockchain innovation and adoption, including through supporting public sector adoption, creating a flexible regulatory environment to allow experimentation, and using targeted regulatory enforcement.
• Cross jurisdictional cooperation and government-industry collaboration are essential to developing a blockchain and cryptocurrency policy for Nigeria.
• It should not be designed with direct revenue generation as the principal focus. The Licensing regime should not copy GSM license or similar ones.
• The Blockchain/Cryptocurrencies Regulatory policy, regulation or law should ensure that innovation that promotes Nigeria’s domestic innovation and local contents is made mandatory as a licensing requirements.
• Blockchain/Cryptocurrencies licensing requirements should not be Crypto Trading focusing mainly but it being an element of the regulation or law or policy. It should be solution driven.
• Nigeria Companies or Organizations to be licensed by SEC should have a block chain or Cryptocurrencies solution or product offering that is Nigerian in design and development.
• The Block chain and Cryptocurrencies licensing regime should have provisions for ISPs, Cyber cafes and the Telco’s (3G, 5G) types of licensing regimes depending on whether a) the block chain is Public or Private in use cases and applications, b) the Cryptocurrencies block chain Network is design to issue Tokens or Coins; for Tokens – their purpose(s). block chain & Cryptocurrencies licensing requirements should capture issues of Crypto Assets Inheritance; Blockchain Smart Contracts Implementation requirements and enforcement. The block chain and Cryptocurrencies regulation, policy or law should mandatorily capture and address digital signature provisions.