The crypto community in Nigeria has expressed their support for Europe’s Markets in Crypto-Assets Regulation (MiCA) stablecoin rules, emphasizing the importance of prioritizing the interests of jurisdictions when it comes to crypto projects in order to protect local currencies. In an interview with Cointelegraph, Obinna Uzoije, a data and policy analyst from Nigeria, shared his thoughts on how the Economic Community of West African States (ECOWAS) can learn from MiCA. Uzoije highlighted the benefits that ECOWAS’s regulatory framework for cryptocurrencies would bring to its member states.
Uzoije emphasized that stablecoins are currently the most widely used form of crypto assets, particularly in Africa. Therefore, the implementation of MiCA’s “Stablecoins Regime” on June 30 is a significant milestone for crypto asset regulation in Europe and potentially beyond. The regulation requires issuers and other entities to obtain a MiCA license in order to publicly offer or trade asset-referenced tokens (ARTs) or e-money tokens (EMTs) within the European Union, with no transitional period.
Uzoije believes that the current leadership of ECOWAS by Nigerian President Bola Tinubu presents an ideal opportunity for the organization to establish a regulatory framework for crypto projects. Some ECOWAS countries, such as Sierra Leone, currently have strict regulations or bans on cryptocurrencies. A unified regulatory framework across all ECOWAS member states would provide clarity for potential crypto investors and simplify investment across borders, eliminating the need to comply with multiple national regulations.
Uzoije also highlighted the issue of money laundering, which Nigerian authorities have raised in their dispute with Binance. He believes that ECOWAS can enhance the fight against money laundering by establishing a unified regulatory framework. This would streamline the tracking of money laundering by crypto entities within ECOWAS and help address concerns about terrorism financing, which has been linked to cryptocurrencies.
In conclusion, a unified regulatory framework for crypto assets in ECOWAS would benefit member states by attracting investors and providing clarity, while also addressing issues such as money laundering and terrorism financing.