The Central Bank of Nigeria, meanwhile, has indicated its intention to regulate Bitcoin use in the country. Though a growing number of Nigerians use Bitcoin regularly to acquire items online, many are afraid to use it because of its instability.
Regulation may protect the consumer and give businesses (and investors) a lot more clarity and confidence in what can be done in the space, which in turn will attract more capital and innovation to the sector, according to the head of business development and growth at South Africa’s BitX.
BitX has already started to build a compliance framework, working closely with governments, regulators and financial institutions, focusing on adopting financial community best practices.
In addition, a Commonwealth of Nations working group made up of Australia, Barbados, Kenya, Nigeria, Singapore and Tonga agreed in August 2015 that virtual currencies could benefit member states and drive development.
With 18 African members, The Commonwealth Secretariat will create a digital repository of best practices and model regulations as part of an effort to assist members in developing policy.
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