After a recent court ruling in the United States state of Illinois that classified Bitcoin and Ether as commodities, crypto industry stakeholders in Nigeria are urging the country’s Securities and Exchange Commission (SEC) to adopt a similar approach in its regulatory framework. 

The call for clarity and proper classification comes as cryptocurrencies play an increasingly significant role in the global financial landscape. Lucky Uwakwe, chairman of the Blockchain Industry Coordinating Committee of Nigeria (BICCoN), spoke to Cointelegraph about the importance of clearly defining crypto assets.

Clear guidelines needed

According to Uwakwe, this approach would provide creators with clear guidelines on where to seek regulation.

“The Nigerian SEC should keep in mind the need to make rules that define the asset class of crypto assets or break respective crypto into asset classes and explain to the public how such crypto qualifies to be called securities or commodities,” he said.

Uwakwe said that while the Commodity Futures Trading Commission  believes Bitcoin and Ether are commodities , the distinction between proof-of-stake and proof-of-work protocols could alter the classification of specific crypto assets.

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However, in Nigeria, the Commodity Board has traditionally focused on physical commodities such as cash crops and agricultural products, showing little public interest in digital commodities to date.

Advocacy for individual scrutiny of cryptocurrencies

Oladotun Wilfred Akangbe, chief marketing officer at Flincap — a platform for African over-the-counter crypto exchanges — highlighted the multifaceted nature of cryptocurrency and the varied interest from multiple Nigerian governmental bodies.

“Foundational cryptocurrencies such as Bitcoin and Ethereum have become very valuable commodities such that assets are priced in them,” Akangbe noted.

Akangbe suggested that the SEC should primarily focus on using cryptocurrencies as fundraising instruments, such as initial coin offerings. Another local crypto analyst, Rume Ophi, argued that each cryptocurrency is unique and should be scrutinized individually to determine whether it qualifies as a security or a commodity.

The stakeholders’ recommendations come as Nigeria seeks to establish a comprehensive regulatory framework for digital assets. By considering Bitcoin ( BTC ) and Ether ( ETH ) as commodities, the Nigerian SEC could provide clarity and stability in the market.

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