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While Nigerian authorities have generally been perceived as having an anti-crypto stance, recent developments on the regulatory front suggest a shift toward supporting crypto businesses. Buchi Okoro, CEO of the digital asset exchange Quidax, which recently obtained an operating license, believes these developments could lead to broader adoption of crypto assets in Nigeria.
Quidax Wins Regulatory Approval After Proactive Outreach
In written responses to questions from Bitcoin.com News, Okoro, however, urged Nigerian authorities to create a clear legal framework that allows for a smooth launch of products and services by crypto businesses. Such a framework, he said, would enable the government to supervise the crypto sector while fostering innovation.
Regarding Quidax‘s early licensing by the Nigerian Securities and Exchange Commission (SEC) compared to other exchanges, Okoro attributed it to Quidax’s proactive engagement with regulators. He also suggested that Quidax’s status as a Nigerian company might have influenced the SEC’s decision to grant approval.
When asked about Nigerians’ continued embrace of crypto despite regulatory uncertainty, Okoro pointed to the high proportion of millennials and Gen Zers in the population, demographics known for their openness to innovation. Below are Okoro’s answers to all the questions sent.
Bitcoin.com News (BCN): The Nigerian crypto sector has had a bumpy ride over the last few years. At one point, the government banned all Deposit Money Banks (DMBs) from enabling crypto transactions. More recently, the government clamped down on crypto exchanges blaming them for the crashing value of the naira, its national currency. It went as far as arresting Binance executives and blacklisting the IPs of crypto exchanges operating in the country. Given all this, how would you rate the Nigerian crypto industry’s evolution, compared to the more developed regions of the world like Europe and the US?
Buchi Okoro (BO): I’d say it’s still the early days in the Nigerian crypto space. The government in its actions had reasons to do what it thought was best at the time. But now, with proper dialogue and a better understanding of the digital asset landscape, we are seeing a shift from clampdowns to embracing possibilities.
Even the developed regions like the US and Europe are not perfect. So, globally crypto adoption is still in its infancy. But with clearer regulations and stronger collaborations from both sides, we will see broader adoption and exciting evolution in the Nigerian crypto space and beyond.
BCN: Despite the clampdown by the government and the inconsistent regulator models, crypto adoption continues to rise in Nigeria. What do you think is behind the increasing awareness and use of cryptocurrencies in Nigeria?
BO: An idea whose time has come can hardly be hidden. There’s more awareness around crypto because of its numerous advantages to retail and institutional investors. Everyone is embracing crypto for different reasons; some as a store of value and others as a profitable investment.
Moreover, almost everyone is online and some traditional financial services are not accessible. Cryptocurrencies solve many of these problems, and more people are turning to them. Let’s not forget that a great percentage of Nigerian adults are millennials and Gen Zers – young people who are digital natives and open to innovation.
BCN: In the early days of crypto, many in the industry saw it as a tool that could help developing countries leapfrog and compete with their more developed counterparts. Do you think Nigerian regulators are actively exploring the unique opportunities crypto can offer the country? What would be your advice to the Nigerian government on regulating crypto while fostering innovation?
BO: Absolutely! We have seen firsthand the efforts put into understanding the crypto market by the government. The potential of the crypto market is endless, with diverse opportunities for both the government and individuals.
The recent developments in terms of regulation show that Nigerian authorities are creating various channels of support for crypto businesses, which may result in broader adoption. And I believe what the government has to do is create a legal framework that is not only clear about crypto trading and investing but also gives room for crypto businesses to find soft landing when launching their products and services.
BCN: As mentioned above, Nigerian regulators have clamped down on crypto exchanges operating within its shores. Yet, your platform Quidax got approved and is rendering crypto exchange services in the country. Could you tell our curious readers what your company has done or is doing differently to warrant such permission to operate where others have been banned?
BO: First, Quidax is an African cryptocurrency exchange that was founded by Nigerians. So, we have our feet dipped into the Nigerian market to understand how best to deliver quality services to our customers.
We have also been in dialogue with the regulators for several years because we understand that an approval is a win-win for everyone. Moreover, we’ve been operating for over 6 years with a verifiable track record of integrity and utmost customer satisfaction. For us, the license is a representation of the trust our customers have in us and our commitment to delivering top notch services to customers
BCN: Can you briefly outline some of your specific services and how you ensure they comply with all relevant laws and regulations?
BO: We offer our customers an easy way to move from Naira to Crypto and back as well as swapping from one crypto to another crypto. Our customers can do this using our instant swap feature and order book exchange.
As an entity with a Securities and Exchange Commission (SEC) provisional license, every product offered by Quidax is and will be carried out in line with the requirements of relevant regulations from the SEC. Crypto regulations were designed taking into account the dynamic nature of the industry and we abide by them for all our services. The CBN also has guidelines on how bank accounts for licensed crypto exchanges will be operated. We intend to fully comply with these guidelines as well.
BCN: Many governments fear that crypto could be used for illicit purposes, such as terrorism financing and money laundering. Given Nigeria’s unique challenges in these areas, how can the government best manage the crypto industry while still capitalizing on its potential opportunities?
BO: The best way to defeat a common enemy is through collaboration. In this case the common enemy to both us and the government are bad actors that try to use crypto for illicit transactions.
One way we solve this problem is through our KYC and AML process for everyone that signs up as a customer. We also have internal transaction monitoring tools that sometimes flag suspicious transactions even from verified customers.
BCN: With everything happening in the country, including regulatory efforts by the government amid increasing socioeconomic challenges, where do you see the Nigerian crypto industry in 2030?
BO: For every one person using crypto today there are 10-20 people who we believe will start using crypto before 2030. Crypto is not just another asset class but it can be the difference between going hungry and putting food on the table. As a teacher-cum-crypto trader I spoke to a few months ago told me, Crypto has allowed him to feed himself and his family while pursuing his passion of educating children.