Nigeria Leads Cryptocurrency Regulation Ahead of Kenya, Claims Yellow Card Executive

Lasberry Chioma Oludimu, MD of Yellow Card Nigeria, asserts that Nigeria is leading in cryptocurrency regulation compared to Kenya. Nigeria has implemented a regulatory incubation program for exchanges, while Kenya is still developing its regulations. Kenya’s focus has primarily been on taxation of crypto transactions, lacking a comprehensive framework. Nigeria’s regulatory efforts provide a model for other countries in the region looking to establish robust cryptocurrency regulations.

According to Lasberry Chioma Oludimu, the Managing Director of Yellow Card Nigeria, Nigeria is ahead of Kenya in terms of cryptocurrency regulation. Speaking on the sidelines of the LightSpark Developers Day in Lagos, Oludimu noted that Nigerian regulators have made significant strides in the regulatory framework for cryptocurrencies, allowing exchanges to operate under a supervised environment. This regulatory incubation provides a platform for exchanges to learn and share data with regulators, ultimately aiming for a comprehensive regulatory approval process. In contrast, Kenya is still in the early stages of developing its regulatory framework and lacks a sandbox environment for cryptocurrency operations. Despite having a notable cryptocurrency market, Kenya’s regulatory focus thus far has been primarily revenue-oriented, emphasizing taxation rather than comprehensive industry regulation. The differential regulatory approaches underscore Nigeria’s leadership in thoughtful cryptocurrency governance on the continent.

The cryptocurrency landscape in Africa varies significantly between countries, with Nigeria and Kenya presenting contrasting regulatory environments. Nigeria has actively initiated a formal regulatory structure for cryptocurrency through the Securities and Exchange Commission (SEC), which has introduced programs for approval and licensing of crypto platforms. This contrasts with Kenya’s slower progress, where regulatory efforts primarily focus on taxation and revenue generation, reflecting a nascent regulatory framework that is still in development. The ongoing dialogue around cryptocurrency regulation emphasizes the need for robust frameworks to foster innovation while ensuring compliance and protection within the crypto industry.

In summary, Nigeria is currently positioned as a leader in cryptocurrency regulation compared to Kenya, which is still navigating its regulatory framework. The proactive approach of Nigeria’s regulatory bodies, particularly the SEC, creates a conducive environment for crypto exchanges, enabling a collaborative process of learning and oversight. While Kenya recognizes the growing presence of cryptocurrency in its market, its focus remains on revenue generation rather than comprehensive regulation, indicating a significant gap in regulatory maturity between the two countries. Nigeria’s established framework may serve as a model for other African nations seeking to regulate this evolving space.

Original Source: technext24.com