The World Federation of Exchanges emphasizes the need for stringent regulations on Crypto-Asset Trading Platforms, aligning them with existing regulated exchanges, as highlighted in their recent report, “Good Markets for Good Outcomes β the Role of Governance in the Worldβs Exchanges.”
While the Central Bank of Nigeria recently lifted a ban on cryptocurrency transactions, the WFE underscores the importance of subjecting crypto trading platforms to similar rules as traditional exchanges due to observed failures in the crypto market.
The WFE supports a technology-neutral regulatory approach and encourages governments to apply existing exchange laws to crypto-asset platforms.
Despite the global cryptocurrency market exceeding $1 trillion in market capitalization, concerns arise from failures in the crypto space, often attributed to governance issues, lack of controls, and potential fraud.
Meanwhile, the Securities and Exchange Commission, responding to the 2021 crypto ban, has introduced regulations for digital assets and is exploring the possibility of tokenized coin offerings on licensed digital exchanges.
In a broader context, blockchain research firm Chainalysis reports a nine percent year-over-year growth in crypto transactions in Nigeria, reaching $56.7 billion between July 2022 and June 2023.
