Cryptocurrency Categorization Demand Grows: Stakeholders in Nigeria Want Bitcoin and Ether to be Classified as Commodities

Stakeholders in Nigeria are pushing for the Nigerian Securities and Exchange Commission (SEC) to follow the lead of the Illinois court that recently ruled

Stakeholders in Nigeria are urging the Securities and Exchange Commission (SEC) to classify Bitcoin and Ether as commodities, following a recent court ruling in Illinois.

As cryptocurrencies gain increasing attention within the global financial system, there are growing calls for their proper categorization and further definition, Cointelegraph shares.

Speaking with Cointelegraph, Lucky Uwakwe, chairman of the Blockchain Industry Coordinating Committee of Nigeria (BICCoN), highlighted the need for a precise definition of cryptocurrency.

According to the chairman, this approach would guide the manufacturers in pinpointing the regulations.

"The Nigerian SEC should bear in mind the need to create regulations that define the asset class of crypto assets or break down the respective crypto into asset classes and explain to the members of the public how such crypto qualifies to be called securities or commodities," he noted.

Different protocols, different regulationsDespite the United States SEC and Commodity Futures Trading Commission (CFTC) agreeing that Bitcoin and Ether are commodities, the varying protocols — proof-of-stake (PoS) versus proof-of-work (PoW) — could alter the categorization of specific crypto assets, according to Uwakwe.

While physical commodities like cash crops and agricultural products have historically garnered attention from the Commodity Board, digital commodities have not received the same level of focus in Nigeria.

Nigerian government agencies showing interestSeveral Nigerian government agencies, including the Central Bank of Nigeria (CBN), SEC, Federal Inland Revenue Service (FIRS) and Nigerian Communications Commission (NCC), are showing interest in cryptocurrencies, according to Oladotun Wilfred Akangbe, chief marketing officer at Flincap, an exchange platform for over-the-counter cryptos in Africa.

Highlighting that the value of assets is now being pegged to Bitcoin and Ether, two of the leading cryptocurrencies, Akangbe underlined that Bitcoin and Ether need separate approaches to regulation from other cryptocurrencies.

According to Akangbe, the SEC should pay special attention to initial coin offerings (ICOs) and other forms of cryptocurrency financing. Looking at each cryptocurrency to determine whether it is a security or a commodity is important because they are all unique, another local crypto researcher, Rume Ophi, stated.

If Nigeria is serious about creating a thorough regulatory framework for digital assets, it must listen to the suggestions of its stakeholders. By classifying Bitcoin and Ether as commodities, the Nigerian SEC can bring much-needed market stability and clarity, encouraging innovation while ensuring regulatory compliance.