Gluwa Advocates for Cryptocurrency Regulatory Framework in Partnership with Nigerian Officials

The leading global blockchain firm Gluwa has reached out to the Federal Government of Nigeria to advocate for the establishment of a crypto policy framework that could unlock the potential of blockchain technology in Africa’s largest economy, paving the way for new opportunities in innovation and economic development.

Currently, Gluwa has developed the first blockchain-based credit repository, enabling financial institutions to tackle fraud and enhance credit scoring through its Creditcoin network, which offers trustless, on-chain credit history verification. Additionally, users can invest their USDC across various international fintech lending partners via the versatile, non-custodial Gluwa Wallet.

Gluwa Capital, the venture division of the company, also invests in startups and has committed $35 million to support the growth of locally owned financial service providers and cryptocurrency exchanges throughout Africa.

“We believe that cryptocurrencies have the potential to transform the financial landscape in Nigeria and across the African continent,” stated Gluwa CEO Tae Oh. “By collaborating closely with the Nigerian government, we aim to establish a policy framework that promotes the responsible use of cryptocurrencies while safeguarding consumers and deterring criminal activities.”

Despite a growing acceptance and utilization of digital assets, particularly among the youth, the Nigerian government has not fully embraced them due to concerns regarding fraud, money laundering, and other illicit activities. Gluwa asserts that with the right legislative framework, digital assets could play a crucial role in Nigeria’s economic advancement and financial inclusion.

“Gluwa is dedicated to fostering innovation and growth within the blockchain sector, and we believe that Nigeria possesses significant potential in this domain,” remarked Tae Oh. “Our proposals have been acknowledged by the Ministry of Finance, and we sincerely anticipate collaborating with them to cultivate an environment that promotes innovation, attracts investment, and supports the blockchain industry’s expansion.”

Proponents of blockchain technology believe that digital assets could help address several ongoing challenges facing the nation’s financial system, such as high transaction fees, limited access to credit, and insufficient financial inclusion.

“We are pleased to see interest from companies like Gluwa in supporting the growth and development of the blockchain industry in Nigeria,” commented Ahmed Gloria Kufeji, a Director at the Nigerian Ministry of Finance. “We recognize the potential of blockchain technology to drive economic growth and financial inclusion, and we are committed to creating a policy framework that encourages innovation and investment while also protecting consumers and preventing criminal activities.”

Initial coin offerings (ICOs) and other crypto-related activities are currently governed by regulations issued by the Securities and Exchange Commission (SEC) of Nigeria. Gluwa’s proposals aim to further clarify the legal framework and encourage broader adoption of crypto-assets. Tebogo Thobeje, the founder of the Blockchain Africa Society, has expressed support for such initiatives.

Tebogo stated:

“Gluwa’s announcement is a positive development for the African blockchain industry, with Nigeria at the forefront. We hope the government takes a proactive approach to support the growth of the blockchain industry, and we look forward to collaborating with Gluwa and other key stakeholders to achieve this objective.”