With African governments still developing policies on digital assets, blockchain advocate Rume Ophi weighed in on the crypto regulation narrative. He suggests that the best way to regulate crypto is to work together instead of restricting.
Ophi shared his insights on how regulators can boost innovation and safeguard consumers while maintaining a level playing field for all stakeholders. In a conversation with CoinAfrica publisher Louis Dike, Ophie emphasised the importance of creating policies that address the distinct economic challenges Africa faces.
‘Regulate, Not Strangulate’: Rume Ophi On Good Crypto Regulation In Africa
Ophi summed up his philosophy on crypto regulation with a short phrase: “Regulate, not strangulate.”
Further, he said regulators should not be antagonists in the industry. Instead, he believes they should provide a space for new blockchain companies to do business and to innovate responsibly.
He condemned the policies of some authorities, which he said were brought in with insufficient consultation with those in the industry.
“It should be more of a partnership than the Lord and Saviour. Our regulators have the Lord and Saviour mentality,” Ophi said.
The blockchain educator also suggested that policymakers should involve exchanges, developers, advocacy networks, and others in the process of enacting large-scale crypto regulation initiatives.
“We have to just move together,” he declared. Moreover, he emphasized that it takes cooperation to create a sustainable digital asset ecosystem.
Crypto Regulation Must Reflect Africa’s Reality
Ophi also cautioned against the importation of regulatory frameworks from other jurisdictions without taking into account local conditions.
“What works in the US most times doesn’t work here,” he said. “We need to have regulations that are tailored to our own jurisdiction,” Ophi added.
He noted that problems and opportunities exist that vary greatly across Africa and North America and Europe. Thus, crypto regulation must be based on the local context. These include consideration of cross-border payments, financial inclusion, access to dollar-based assets, etc.
The industry veteran said that in the case of the industry, regulators tend to think they know what they are doing because they have studied certain foreign regimes.
However, “the agencies, the regulators don’t have to know it all,” Ophi said. He then added that industry can contribute to the policy discussion.
A similar sentiment was expressed by BoundlessPay CEO and co-founder Franklin Peters in an exclusive interview with CoinAfrica. He noted that many regulatory regimes don’t take the local market into account. “The government needs to really understand what the market needs and tackle those things,” he said.
To know more topics that Rume Ophi discussed, visit:
Coinafrica One-on-One: Rume Ophi on Bitcoin, Regulation and Africa’s Crypto Future
Collaboration Over Fragmentation
Talking about Nigeria’s regulatory environment, Ophi stated that some agencies’ lack of collaboration has left businesses and investors confused.
He said that the regulators should be more open with the industry, be more available, and be in the process of formulating policies.
“Some agencies should be accessible,” he said. To spotlight how a collaborative approach could change things, Ophi added, “Let us do this thing together. Let’s come to a compromise and do this thing together.”
Ophi used the Ghana case as an example, where regulators and stakeholders have helped shape the policy outcomes. He proposed that the same could be done to boost good crypto regulation in Africa.
Peters also said that the needs of builders must be taken into account prior to enacting new regulations. “The current regulatory frameworks that are available, both in Nigeria and some other parts of Africa, are not friendly enough for ecosystem growth and survival,” he said.
Clear Laws Could Unlock Growth
In spite of the regulatory hurdles, Ophi is optimistic that the African crypto market will keep growing at a fast pace. He said that the increasing internet penetration, mobile money use, and the youthful population who are keen to try out new technologies were the reasons.
He, however, said that long-term growth will depend on the clear regulation and legislation of crypto.
“If we have a crypto law, we don’t even have a crypto law passed by parliament yet,” Ophi said.
Ophi noted that an effective crypto regulation framework will ensure that businesses have clear rules to follow. Moreover, he believes it should still leave space for the sector to innovate and develop solutions relevant to African markets.
Meanwhile, according to Peters, regulation shouldn’t be a constraint on startups innovating. “The typical startup in Nigeria does not have the financial wherewithal” to meet some of the capital and licensing requirements currently being proposed, he said.
To know more about Franklin Peters’ take on Africa’s crypto market, please visit:
Franklin Peters on Stablecoins, Crypto Regulation & Africa’s Financial Future | CoinAfrica Interview
Industry Leaders Call For Crypto-Friendly Regulation In Africa
Ophi isn’t the only group urging reform of crypto regulation in Africa. Peter, who is also the Chairman of Virtual Asset Service Providers Association (VASPA), said governments should concentrate on boosting conditions that will enable startups to thrive.
“If you have provided an enabling environment and you provided access to capital, then you can say, okay, having done all these things, go build,” Peters said.
Moreover, he suggested regulators need to increase their sandbox programs and ease access to financing. In addition, Peters called on African governments to implement other initiatives like tax havens for blockchain businesses.
Also Read: Nigeria Senate Advances Crypto Regulation Bill to Protect Investors and Strengthen Digital Economy
