The central theme here is the examination of the missed opportunities and the leaps forward in blockchain regulation, as viewed from two starkly contrasting perspectives. Two primary geographical regions accentuate these perspectives; Nigeria, purportedly the most cryptocurrency-aware country globally, and the United States, with its strongly structured and far-reaching regulatory frameworks.
Nigeria was a hot topic at the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN)’s Digital Assets Summit 2023. Mr. Adedeji Owonibi, CEO of Convexity, suggested that the Central Bank of Nigeria (CBN) could have established a more conducive environment for blockchain and the crypto industry if they had created regulation strategies rather than severing ties with cryptocurrency exchange firms in 2021. Looking forward, Nigeria’s National Information Technology Development Agency (NITDA) appears to have the upper hand in supporting the industry, laying out a potential blueprint for blockchain assimilation.
Despite its dominant cryptocurrency awareness and most of its population having an active interest in cryptocurrency investments, regulatory pitfalls persist in Nigeria. The decentralized nature of blockchain and the resultant misunderstanding of its application have posed significant challenges in the way of assimilation. Nonetheless, the country is taking strides towards ensuring the safety and protection of crypto investors with a steering committee set up by NITDA to navigate the blockchain policy’s implementation.
Regulation in the United States presents a different saga. The Department of the Treasury and the Internal Revenue Service (IRS) have proposed new rules requiring digital asset brokers to report gross proceeds and provide information on gains and losses in their crypto assets. Designed to foster higher levels of taxpayer compliance, the proposed rules, if enacted, will give the IRS a clearer picture of taxpayers’ income. A public hearing scheduled for late 2023 will delve deeper into the impact of the regulations on small businesses.
These contrasting narratives reveal an alluring dichotomy – an African country abundant with potential but lacking clear regulatory input, and a North American nation forging ahead with rules to strike an equilibrium between regulatory enforcement and technological evolution. One might speculate that each has something to glean from the other – the daring and openness to engage with digital currencies from Nigeria, and the detailed, measured, and all-encompassing approach to regulation from the United States.
Source: Cointelegraph
