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Africa’s profile as a significant player in the digital currency industry has continued to grow in recent years. The continent is home to some of the countries that have shown the greatest appetite for Bitcoin, including Nigeria, Kenya, Ghana, and South Africa. Despite the continued spread, regulators have continued to disappoint people. However, recent moves in some of the key nations give a glimpse of a bright future for the digital currency industry in Africa.
Nigeria’s Ministry of Finance recently announced that it has partnered with the Securities and Exchange Commission to formulate a regulatory framework for digital currencies. As reported by CoinGeek, the Nigerian government has revealed that it sees great potential in blockchain technology.
Promise aside, the only tangible regulation of the digital currency in Africa’s largest economy was the SEC in September. The securities supervisor revealed that it has classified digital currencies as securities. This will give investors more protection and security, the regulator hopes.
While the promise of forthcoming regulations signals a bright future for the Nigerian digital currency industry, it simply isn’t enough.
In South Africa, the Financial Sector Conduct Authority has previously classified digital currencies as financial instruments. I spoke to Angus Brown, the co-founder and CEO of the SV Centbee Bitcoin wallet, who spoke out openly about the need for regulations. Angus was one of the speakers on a CoinGeek Live panel on the future of global compliance for Bitcoin companies.
“FSCA’s designation of cryptocurrencies as financial instruments has been anticipated, as regulators have diligently consulted with the industry,” Angus told CoinGeek.
“The implication is that crypto firms will have to register as ‘financial service providers’ and will have to meet the same standards as financial advisors and brokers. I support these moves, provided they don’t create an unnecessary or cumbersome barrier for ordinary people to buy or sell modest amounts of Bitcoin SV. “
The proposed rule will also require financial services firms to provide clients with objective information on digital currencies. This will help customers avoid hype and rash speculation, Angus said.
Furthermore, the new rule “will open the door for customers to include Bitcoin SV in their portfolio of assets,” he added. The FSCA will allow for a transitional arrangement, allowing digital currency companies like Centbee to continue serving customers as the rules are integrated.
Angus pointed out that BSV ecosystem companies have continued to set the standard in complying with regulations and working with watchdogs.
“In my view, the Bitcoin SV community continues to be the most aware of its long-term social obligations, relying on a stable technical protocol, setting standards for interoperability and working with regulators to ensure compliance.”
He concluded: “Even if we [BSV community] may not always like what our regulators require, unlike some in the digital currency community, we respect their role. “
Watch Lorien Gamaroff and Angus Brown’s Centbee briefing at CoinGeek Live.
New to Bitcoin? Check out CoinGeek Bitcoin for beginners section, the ultimate resource guide to learn more about Bitcoin, as originally intended by Satoshi Nakamoto, and blockchain.
