Nigeria’s SEC recommends regulating Bitcoin, Ether as commodities.

Nigerian stakeholders are calling on the Nigerian Securities and Exchange Commission (SEC) to adopt a similar approach in its regulatory framework after a recent court ruling in Illinois classified Bitcoin and Ether as commodities.

The call for transparency and proper classification comes as cryptocurrencies play a significant role in the global financial landscape. Lucky Uwakwe, Chairman of the Blockchain Industry Coordinating Committee of Nigeria (BICoN), spoke to Cointelegraph and emphasized the importance of clearly defining the class of crypto assets.

Clear instructions are needed

According to the chairman, this approach provides clear guidelines for where inventors should look for regulation.

“The Nigerian SEC should issue regulations defining the asset class of crypto assets or break the relevant crypto into asset classes and remind the public of the need to explain how such crypto qualifies to be called securities or commodities,” he said.

Uwakwe noted that while the US SEC and Commodity Futures Trading Commission (CFTC) agree that Bitcoin and Ether are commodities, differences between proof-of-stake (PoS) and proof-of-work (PoW) protocols could change the classification. Certain crypto assets.

Related: Binance tax evasion verdict set for October

However, in Nigeria, the production board has traditionally focused on commodities such as cash crops and agricultural products, which to date has not shown much public interest in digital products.

Encouraging individual investigation of cryptocurrencies

Oladotun Wilfred Akanbe, the Chief Marketing Officer at Flinkap, an African platform for over-the-counter crypto exchanges, highlighted the multi-faceted nature of cryptocurrencies and the interest from various Nigerian government bodies such as CBN, SEC, FIRS and NSA.

“Foundation cryptocurrencies like Bitcoin and Ethereum have become very valuable commodities with assets valued in them,” Akanbe said. He emphasized the need for separate regulatory approaches to Bitcoin and Ethereum compared to other cryptocurrencies.

Akangbe proposed that the SEC focus primarily on using cryptocurrencies as fundraising tools, such as initial coin offerings (ICOs). Another local crypto analyst, Rume Offi, argued that each cryptocurrency is unique and should be examined individually to determine whether it qualifies as a security or a commodity.

Stakeholder recommendations are critical as Nigeria seeks to establish a comprehensive regulatory framework for digital assets. By treating Bitcoin and Ether as commodities, the Nigerian SEC can provide much-needed transparency and stability in the market, encouraging innovation while ensuring regulatory compliance.

Magazine: Find hackers who can help you recover your crypto life savings