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Nigeria seeks crypto clarity one year into Tinubu’s tenure

Nigeria’s burgeoning cryptocurrency industry is calling for regulatory clarity as it faces increasing uncertainty. The call comes amid ongoing debates and varying signals from the nation’s financial authorities about the future of digital assets in Africa’s largest economy.

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Nigeria’s burgeoning cryptocurrency industry is calling for regulatory clarity as it faces increasing uncertainty. The call comes amid ongoing debates and varying signals from the nation’s financial authorities about the future of digital assets in Africa’s largest economy.

Stakeholders within Nigeria’s crypto ecosystem, including exchanges, investors, and blockchain advocates, have expressed concerns over the lack of a clear regulatory framework. This ambiguity has created an environment of uncertainty, stifling innovation and hindering the growth of the sector.

The Central Bank of Nigeria (CBN) has historically taken a cautious stance on cryptocurrencies. In February 2021, the CBN issued a directive prohibiting banks and financial institutions from facilitating cryptocurrency transactions. This move, while aimed at safeguarding the financial system, has significantly impacted the local crypto market, pushing many activities underground and limiting access to global crypto services.

Despite the central bank’s hardline position, there have been signs of a more nuanced approach from other government bodies. The Securities and Exchange Commission (SEC) of Nigeria has shown a willingness to engage with the industry. In September 2020, the SEC announced plans to regulate digital assets, recognizing cryptocurrencies and tokens as securities. However, concrete regulatory guidelines have yet to materialize, leaving market participants in a state of limbo.

Industry leaders are advocating for a balanced regulatory framework that promotes innovation while ensuring consumer protection and financial stability. They argue that clear regulations would attract more investment, foster technological advancements, and position Nigeria as a leader in the global crypto economy.

In response to the industry’s calls, the Nigerian government has indicated its intention to develop a more comprehensive policy on digital assets. A regulatory sandbox for fintech and blockchain innovations has been proposed, which would allow for controlled experimentation and assessment of new technologies.

As the dialogue between regulators and the crypto community continues, the future of Nigeria’s cryptocurrency industry hangs in the balance. Stakeholders remain hopeful that a clear and supportive regulatory environment will emerge, enabling the sector to thrive and contribute to the country’s economic development.

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Binance tightens South African compliance rules for crypto transfers

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Binance is tightening compliance measures for crypto transactions in South Africa, announcing it will fully implement the country’s Travel Rule requirements beginning January 2025. The move aligns with regulations set by South Africa’s Financial Intelligence Centre (FIC) and reflects the exchange’s broader efforts to meet global anti-money laundering standards.

Under the new rules, Binance will require South African users to include verified personal information—such as names, addresses, and account details—when sending or receiving crypto between platforms. These changes are designed to increase transparency and traceability of digital asset transfers, making it harder for illicit actors to exploit decentralized networks.

Binance emphasized that users must complete know-your-customer (KYC) verification before transferring crypto to or from external wallets. Transfers to non-compliant platforms may be restricted or flagged, while internal transfers within Binance or to Travel Rule-compliant entities will remain unaffected.

The announcement follows South Africa’s decision in 2023 to designate crypto as a financial product, placing digital asset providers under the supervision of the FIC. The country has since taken steps to integrate crypto into its formal regulatory structure, including licensing requirements and mandatory reporting obligations.

With enforcement beginning in 2025, Binance urged users to familiarize themselves with the new procedures to avoid disruptions. The exchange also plans to provide additional guidance and tools to help users remain compliant as the deadline approaches.

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Ethereum bounces back as market dominance recovers from all-time low

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Ethereum has staged a notable recovery after recently experiencing its lowest market dominance since its early days. The turnaround comes as ETH surged nearly 4% in the past 24 hours, climbing back above the $3,100 mark and narrowing its underperformance gap relative to Bitcoin.

For much of 2024, Ethereum has trailed behind Bitcoin and a growing wave of altcoins, with its market share dropping below 15% — levels not seen since 2015. The slump was driven by investor focus on Bitcoin ETF momentum, lackluster institutional interest in ETH, and rising competition from layer-1 and layer-2 networks offering faster and cheaper alternatives.

Despite these challenges, Ethereum’s fundamentals remain strong. Data shows a healthy uptick in active addresses, transaction volumes, and total value locked in DeFi protocols built on Ethereum. Additionally, hopes remain high for the approval of a spot Ethereum ETF in the U.S., with analysts suggesting a potential turnaround in institutional flows if approved.

Traders are now watching whether this rebound signals a sustained trend reversal or just a temporary relief rally. With key upgrades and ecosystem developments still in the pipeline, Ethereum’s ability to regain dominance may hinge on reigniting both investor confidence and broader developer activity.

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SEC says it won’t re-file fraud case against Hex’s Richard Heart

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The U.S. Securities and Exchange Commission (SEC) has confirmed it will not pursue a retrial in its fraud case against HEX founder Richard Heart, effectively bringing an end to one of the agency’s high-profile crypto enforcement actions.

The decision follows a recent court ruling that dismissed several key allegations against Heart, including claims that he misled investors and violated securities laws through the promotion and sale of HEX, PulseChain, and PulseX tokens. While the SEC initially signaled it would consider further legal options, it has now opted to forgo additional litigation.

Heart, a controversial figure in the crypto world, had long denied the SEC’s accusations, framing the lawsuit as an overreach by regulators. The agency had alleged that Heart raised over $1 billion from investors while misrepresenting how funds would be used and failing to register the offerings.

With the SEC stepping back, the dismissal marks a rare instance in which the regulator has chosen not to continue a crypto-related fraud case, potentially signaling a reassessment of its approach amid growing legal pushback and mounting scrutiny over its enforcement tactics.

Although the case is now closed, legal analysts suggest the outcome could influence future regulatory efforts and may embolden other crypto founders facing similar challenges. Heart, meanwhile, has positioned the development as a vindication, reaffirming his stance that HEX and related projects were never in violation of U.S. securities laws.

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