Onuegbu: Nigeria’s digital assets regulations a step in the right direction

Nigeria has taken a significant step towards regulating the cryptocurrency and digital assets ecosystem with the move by the Securities and Exchange Commission (SEC) to implement regulations in the sector. Collins Onuegbu, the Founder of Signal Alliance Technology, commends the regulator for this initiative, emphasizing that it is a positive development for the industry. In a recent interview with CNBC Africa, Onuegbu discussed the importance of regulating the fast-growing global trend of cryptocurrencies and digital assets, pointing out that it is better late than never. He also highlighted the need for collaboration between regulatory authorities and industry players to address key issues and drive investor confidence. Onuegbu specifically mentioned the recent issues involving Binance, a leading cryptocurrency exchange, and emphasized the importance of finding constructive solutions beyond legal battles. Speaking about the traction gained in the cryptocurrency space in Nigeria, Onuegbu acknowledged the recent licensing of platforms such as Bushire and Quidax by the SEC. He noted that the market has shown interest, with about 50 companies applying for registration, indicating a growing enthusiasm in the sector. Despite challenges faced by some players like Binance, Onuegbu expressed optimism that the market will reset and continue to thrive, given the significant trading volumes seen in the country. The future outlook for crypto transactions appears promising, with Nigeria ranking high globally in terms of transaction volumes. Onuegbu also highlighted the potential use cases for blockchain technology beyond cryptocurrencies, emphasizing its role in enhancing security and efficiency in various industries. He mentioned applications in financial systems, land and property management, and contract validation as examples of how blockchain can revolutionize traditional processes. Turning to the impact of external factors on the Nigerian economy, particularly the recent rate cut by the US Federal Reserve, Onuegbu discussed the potential benefits for developing countries like Nigeria. He noted that lower borrowing costs could ease some of the financial burdens faced by countries like Nigeria and attract foreign investment. The softer dollar may lead to increased inflows into Nigeria, bolstering the economy and potentially stabilizing the exchange rate. Despite challenges such as high inflation rates, Onuegbu sees the rate cut as a positive development that could benefit various sectors in the Nigerian economy, including the tech industry. Concluding the conversation, Onuegbu shared insights into his business expansion in Africa, particularly in Kenya. He highlighted the growth opportunities in the East African country and commended its relative stability compared to Nigeria. As Signal Alliance Technology continues to expand its footprint across Africa, Onuegbu expressed optimism about the business prospects in Kenya and the region, hinting at future expansions into other African markets. Overall, the interview highlighted the evolving regulatory landscape in Nigeria's cryptocurrency sector, the potential for blockchain technology to drive innovation across industries, and the positive economic outlook for the country amidst global developments.