Members of Nigeria’s cryptocurrency community have expressed their strong support for Europe’s Markets in Crypto-Assets Regulation (MiCA) stablecoin rules, viewing it as a significant step forward.

They emphasize the importance of jurisdictions safeguarding their interests in relation to cryptocurrency projects in order to protect their local currencies.

Obinna Uzoije, a data and policy analyst from Nigeria, extensively discussed how the Economic Community of West African States (ECOWAS) could draw valuable lessons from Europe’s Markets in Crypto-Assets Regulation (MiCA).

Uzoije methodically outlined the potential benefits that a well-structured regulatory framework around cryptocurrency could bring to the member states of ECOWAS.

He highlighted the opportunity for regulatory alignment with global standards and the potential to attract investment and foster economic growth through a coherent approach to cryptocurrencies within the region.

Uzoije emphasized that stablecoins are currently the most widely adopted type of crypto asset. He specifically noted that Africa has seen a surge in stablecoin transactions compared to other digital assets.

In light of this, the implementation of MiCA’s “Stablecoins Regime” on June 30 carries substantial implications for the regulation of crypto assets in Europe and possibly other regions.

The new regulation mandates that all issuers and other entities seeking to publicly offer or trade asset-referenced tokens (ARTs) or e-money tokens (EMTs) within the European Union must obtain a MiCA license. This requirement comes into effect with no transitional period.