Seeds of Wisdom RV and Economic Updates Thursday Morning 8-29-24
Good Morning Dinar Recaps,
Nigeria’s SEC issues first license to local crypto exchange
As the regulatory environment continues to evolve, other local exchanges will likely follow Quidax’s lead and seek to meet the SEC’s requirements.
The Nigerian Securities and Exchange Commission has issued Quidax, an Africa-based crypto exchange, its first provisional operating license.
The development signals the beginning of formal recognition and regulatory oversight for the country’s digital asset industry.
According to a press release shared with Cointelegraph, the SEC’s license permits Quidax to operate as a registered crypto exchange in Nigeria.
Quidax said the SEC’s approval is a “shot of adrenaline” for the Nigerian crypto community, encouraging further innovation and expansion.
Regulatory milestone
Buchi Okoro, the co-founder and CEO of Quidax, praised the SEC — particularly under the new leadership of Emomotimi Agama — for its decisive action to bring order, confidence and investor protection to the Nigerian crypto industry.
The regulatory approval now enables Quidax to collaborate with banks and other financial institutions, pending the Central Bank of Nigeria’s approval. The SEC’s licensing follows a comprehensive amendment to its rules on June 21, which covered digital asset issuance, offering platforms, exchange and custody.
A notable part of the regulatory overhaul is the introduction of the Accelerated Regulatory Incubation Programme designed to help virtual assets service providers align with new regulatory requirements.
Despite these advancements, there was initial concern that the stringent licensing requirements might significantly reduce the number of local crypto exchanges.
The Nigerian SEC mandates a minimum upfront capital requirement of 500 million naira ($556,620) and a current Fidelity Insurance Bond covering at least 25% of the stipulated minimum paid-up capital for both digital asset exchanges and digital assets offering platforms.
Nigeria’s crypto landscape
Nigeria — Africa’s largest economy — has consistently ranked high in global cryptocurrency adoption. According to a recent survey of 15 countries, Nigeria boasts the world’s most cryptocurrency-aware population.
Chainalysis’ “2023 Cryptocurrency Geography Report” placed Nigeria second in crypto adoption among 154 countries, underscoring its critical role in the global digital asset ecosystem.
However, despite the high adoption rate, the anticipated influx of foreign crypto investment has not materialized as expected. The new regulatory framework and Quidax’s licensing could potentially alter this trajectory by providing a more stable and secure environment for both local and international investors.
@Newshounds
Source : Coin Telegraph
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Hong Kong announces sandbox to accelerate RWA tokenization adoption
Hong Kong’s financial regulator launched a new sandbox initiative at testing tokenization use cases across asset classes and real-world applications in the financial sector.
The Hong Kong Monetary Authority has launched its new initiative dubbed “Project Ensemble Sandbox” in a bid to double down on its tokenization efforts of real-world assets.
In an Aug. 28 press release, the HKMA said the initiative aims to test and refine the use of tokenized money for interbank settlements and transactions involving tokenized assets.
The sandbox is said to focus on four main themes for its initial round of experimentation: fixed income and investment funds, liquidity management, green and sustainable finance, and trade and supply chain finance.
The HKMA says banks have already connected their tokenized deposit platforms to the sandbox, allowing for real-time testing of payment-versus-payment and delivery-versus-payment settlement mechanisms.
The initiative includes Standard Chartered (Hong Kong), HSBC, Bank of China (Hong Kong), Hang Seng Bank, and HashKey Group, among others.
In a separate development, Ant International, a tech firm headquartered in Singapore, revealed its participation in the sandbox with a focus on liquidity management. The company will work with Hong Kong branches of Standard Chartered Bank and HSBC to develop a global liquidity management solution that supports real-time, cross-border payments.
HKMA Chief Executive Eddie Yue commenting on the initiative said the sandbox marks a “significant step forward for the HKMA and the industry to explore the application of tokenization in real-life business scenarios,” adding that with the latest development it wants to further drive innovation and progress in the Hong Kong tokenization market.
@Newshounds
Source: Crypto News
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