Europe’s Markets in Crypto-Assets Regulation (MiCA) stablecoin rules have been met with approval from Nigeria’s crypto community, who see it as a positive step in protecting local currencies and prioritizing the interests of jurisdictions in regulating crypto projects.
In an interview with Cointelegraph, Nigerian data and policy analyst Obinna Uzoije discussed the potential lessons that the Economic Community of West African States (ECOWAS) could learn from MiCA. He emphasized the benefits that ECOWAS’s regulatory framework for cryptocurrency could bring to its member states.
Uzoije highlighted the significance of MiCA’s stablecoin regime, noting that stablecoins are the most widely used form of crypto assets in Africa. The new “Stablecoins Regime” of MiCA, which will be implemented on June 30, is seen as a major milestone for crypto asset regulation in Europe and potentially beyond.
The regulation requires issuers and other entities to obtain a MiCA license to publicly offer or trade asset-referenced tokens (ARTs) or e-money tokens (EMTs) within the European Union.
Uzoije believes that ECOWAS, under the leadership of Nigerian President Bola Tinubu, has a unique opportunity to establish a regulatory framework for crypto projects. This could help ease restrictions in countries like Sierra Leone, which currently have stringent or outright bans on cryptocurrencies.
A unified regulatory framework for all ECOWAS member states would provide clarity to potential crypto investors and simplify investment across different countries. It would also help in addressing issues like money laundering and terrorism financing by streamlining regulations and compliance across the region.
While Nigeria has cited money laundering as a major concern in its ongoing dispute with Binance, Uzoije believes that a unified regulatory framework across ECOWAS member states could enhance the fight against money laundering by crypto entities. Clear regulations would also help in addressing terrorism financing.
In a related development, the Securities and Exchange Commission (SEC) has dropped its probe into Ether but is still pursuing billions in penalties from Ripple. This is the latest in Hodler’s Digest, covering the period from June 16 to 22.