African cryptocurrency ecosystem gets $35m boost
Blockchain tech firm Gluwa has committed $35 million to the growth of indigenously-owned crypto exchanges in Africa.
Gluwa announced the planned investment this week, as the company expressed readiness to work with the Nigerian government to create a policy framework that permits the adoption of crypto currencies in Africa's largest economy.
The company connects global capital to emerging market investment opportunities through blockchain technology.
Also, Gluwa has the first blockchain-based credit repository that enables financial institutions all over the world to tackle fraud and provide instant credit scoring via its Creditcoin network.
US-based Gluwa believes crypto currencies can play an important role in driving economic growth and financial inclusion in Nigeria with the right policy framework.
"Our proposals have been sent to the Securities and Exchange Commission (SEC), the Ministry of Finance, and the Central Bank of Nigeria. We earnestly look forward to working with them to create an environment that fosters innovation, encourages investment, and supports the growth of the Web3 industry,” said Tae Oh, Gluwa founder and CEO.
Oh added: “We believe cryptocurrencies have the potential to transform the financial landscape in Nigeria, and the African continent. By working closely with the Nigerian government, we hope to create a policy framework that encourages the responsible and regulated use of cryptocurrencies while prioritising the protection of consumers and preventing illicit activities.”
The move comes at a time when the SEC has begun taking steps toward regulating cryptocurrencies, issuing guidelines for initial coin offerings, and other cryptocurrency-related activities.
Under SEC’s new rules, all crypto exchanges providing service to Nigerians are now required to secure a permit, which gives the Commission access to its records.
Exchanges are expected to submit weekly and monthly trading information as well as quarterly and annual financial and compliance reports.
Tebogo Thobeje, founder of the Blockchain Africa Society, lauded Gluwa’s announcement as a positive development for the African blockchain industry.
Thobeje said: "It shows that there is growing interest and support for cryptocurrencies among businesses and investors in Nigeria. We hope that the Nigerian government will take a proactive approach to support the growth of the blockchain industry, and we look forward to working with Gluwa and other important stakeholders to achieve this goal.”