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The Markets in Crypto-Assets Regulation (MiCA) stablecoin regulations of the European Union have been hailed as a welcome development by a data and policy analyst from Nigeria. The analyst asserts that it is critical for jurisdictions to prioritize their interests with regard to crypto initiatives in order to safeguard their local currencies.

Obinna Uzoije highlights the many benefits the regulatory framework of ECOWAS related to crypto would bring to its member states.

According to Uzoije, stablecoins are the most important use case for crypto assets. He shared, that Africa in particular has more transactions in stablecoin than any other type of digital asset.

In a milestone for crypto asset regulation in Europe, the stablecoin rules of MiCA took place on June 30.

The rule mandates that issuers and other entities get a MiCA license without any grace period in order to publicly offer or trade asset-referenced tokens or e-money tokens within the European Union.

The President of Nigeria, Bola Tinubu according to Uzoije, his current leadership of ECOWAS gives the organization the perfect opportunity to establish a regulatory structure for crypto projects.

Some ECOWAS nations, like Sierra Leone, have strict regulations or complete bans on cryptocurrency. These limitations might be lessened by an ECOWAS regulatory framework that applies to all 15 of its member nations.

A much-needed clarity would be offered for the potential crypto investors by a consolidated regulatory structure for all the member states. ECOWAS-specific rules would ease investment across member states, as suggested by Uzoije getting rid of the need to observe multiple national regulations.

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