Cooking Co-Created Crypto Policies: Lessons from Hilda Baci’s Pot of Jollof

If Hilda Baci’s name is new to you, you have likely been out of the loop on the culinary scene. Hilda Baci is a celebrated Nigerian chef, restaurateur, actress, and entrepreneur who made headlines in May 2023 for breaking the Guinness World Record for the longest cooking marathon. She cooked non-stop for an impressive 93 hours and 11 minutes, showcasing her culinary prowess and determination. Although she lost the title to Irish chef Alan Fisher later that year, her achievement still earned her widespread recognition and admiration. 

Baci’s latest attempt at becoming the Guinness World Record for cooking the largest pot of jollof offers valuable insights for crypto regulators across the world, especially Africa. By examining Baci’s approach to collaboration, community engagement, and openness, we can draw parallels with the challenges faced by crypto regulators worldwide, including Nigeria, my home country. To do this, I will highlight four (4) things regulators can learn from Baci, and conclude by illustrating my point with contrasting approaches to crypto reforms in the United States and Nigeria. You can call this crypto jollof, if you like. Tighten your apron!

1. Collaboration and Stakeholder Engagement

Baci’s success was largely due to her ability to bring stakeholders together, including her team of assistants, sponsors, and the community. This collaborative approach is crucial in crypto regulation. Engaging with industry stakeholders, including exchanges, wallet providers, and users, can help create effective and practical regulations. 

Also, by fostering a collaborative environment, regulators can balance innovation with consumer protection, promoting a more stable and inclusive crypto market. When regulators learn to truly and genuinely collaborate with stakeholders, it will be able to save limited resources for what is progressive and forward-looking. The resources that often go into trying to literally shove policies and regulations down stakeholders’ throat through regulation-by-enforcements could be better saved for more inclusive multi-stakeholder approaches that greatly benefit collaboration and compliance. 

Think of the ongoing Nigeria-Binance dispute for example. I believe it highlights the need for a more constructive approach, as the current adversarial stance benefits neither party, hindering Binance’s operations, undermining Nigeria’s economic potential, and harming the emerging crypto industry. It’s unhealthy for Binance; counterproductive for Nigeria; and toxic to a nascent industry that is still trying to find its feet. A collaborative and solution-oriented approach, involving regular dialogue and engagement, mutually beneficial terms, and industry stakeholder involvement, can lead to improved outcomes, enhanced cooperation, and industry growth. This way, both parties can build trust, foster a more cooperative environment, and create a favorable environment for innovation, growth, and cooperation, ultimately benefiting everyone involved.

2. Transparency and Open Communication

Baci’s cooking process was livestreamed, allowing thousands of people to witness her record-breaking attempt. This transparency can be applied to crypto regulation, where clear communication and regular updates can help build trust and confidence in the regulatory framework. Here, a good example is when Nigeria authorities blocked a number of crypto platform’s websites in February 2024 over genuine concerns about national security—yes, this infamous February again! 

This action, however well-intended, was taken by the authorities without any open communication—particularly with the affected crypto operators—about their activities and the risks and threats to the country that had to be urgently addressed. Consequently, the level of tension and uncertainty increased, resulting in more opacity. Till date, no communication on any further considerations or actions on the matter. No accountability. No transparency. No engagement. More uncertainty. Clear guidelines and expectations can reduce uncertainty, promoting a crypto industry that is not necessarily inconsistent with fiscal and monetary policy, and national security. Transparency and open communication can make seeming adversaries your best friends. Perspectives.

3. Community Engagement and Cultural Significance

Baci’s event was not just about cooking; it was a celebration of Nigerian culture and community. Crypto regulators can learn from this approach by recognizing the cultural significance of digital assets and engaging with the broader community. By doing so, regulators can create regulations that are more inclusive and responsive to the needs of diverse stakeholders, ultimately fostering a sense of community and cooperation in the digital asset space.

Hilda Baci’s record-breaking jollof event was a celebration of Nigerian culture and community, showcasing the importance of inclusivity and engagement. Similarly, crypto regulators can benefit from recognizing the cultural significance of digital assets and engaging with the broader community.

Digital assets have become an integral part of various cultures, with different communities using them in unique ways. Crypto regulators must understand these cultural nuances to create effective regulations. By listening to diverse stakeholders, regulators can gain a deeper understanding of the needs and concerns of different communities. Also, community engagement can help build trust between regulators and the public, fostering a sense of balance and cooperation. Essentially, digital assets are not used in a vacuum; they are part of a broader cultural context. Crypto regulators must consider this context when creating regulations.

4. Regulatory Innovation and Flexibility

Baci’s record-breaking attempt required innovative solutions, including a custom-built pot and a team of assistants. The crypto landscape is rapidly evolving, with new technologies and business models emerging regularly. Crypto regulators must be able to adapt to these changes to create effective regulations. 

Embracing innovation and flexibility in regulation can help create a supportive regulatory environment, protect consumers while allowing for innovation and growth, and adapt to a rapidly evolving crypto through flexibility in regulation. It is smarter, and also cheaper in the long run. Some examples of innovative regulation include introducing sandboxes where crypto companies can test new products and services without being subject to the full range of regulatory requirements. 

Also, adopting flexible licensing frameworks that allow crypto companies to operate in a way that is tailored to their specific business model is a way to start. No regulator can—or should believe it can possibly have—all the answers in one comprehensive framework. This is why I particularly encourage the South Africa approach to crypto regulation. In order to ensure that there were no regulatory gaps for too long, it adopted a joint regulatory approach and considered all crypto assets as “financial products”. Consequently, VASPs are able to register and obtain licenses in record time. Today, South Africa has issued well over 300 licenses to VASPs. In contrast, my home country Nigeria has only six (6) provisional licenses so far. Of course, the South African approach is not perfect. No regulation is, or ever will. Typically, I expect that as more data and intelligence come their way by virtue of the current supervision of VASPs, South African regulators will continue to adapt existing frameworks to evolving changes through regulatory innovation and flexibility. This is regulation.

Illustrating BACI’S Jollof Approach Using the US SEC and Central Bank of Nigeria as Case Studies

I will illustrate my pot-of-jollof-as-an-anology-for-co-creation-of-crypto-policies point with two contrasting approaches to crypto reforms from two big countries—one from the United States Securities and Exchange Commission (US SEC) under the Donald Trump administration and the other from the Central Bank of Nigeria (CBN) under the Bola Ahmed Tinubu administration:

The US SEC and Crypto Reforms

In the United States, as soon as the new leadership of the Securities and Exchange Commission (SEC), chaired by Paul S. Atkins, adopted a transparent and open communication with all stakeholders in the industry, particularly the virtual asset service providers (VASPs) themselves. In fact, before Atkins came in, Commissioner Esther Pierce, leader of the SEC’s Crypto Task Force who is also known as “Crypto Mom,” has finely leveraged transparent and open communication with the operators to achieve significant milestones in record time:

1. Launch of the Crypto Task Force Website: Peirce unveiled the task force’s website, outlining its vision for digital asset regulation and inviting public engagement.
2. Collaborative Approach: Pierce emphasized the importance of collaboration with industry stakeholders, including builders, enthusiasts, and skeptics, to develop a regulatory framework that balances investor protection with innovation.
3. Clear Regulatory Guidelines: The task force aims to provide clear guidelines on registering digital assets, practical solutions for industry participants, and sensible disclosure frameworks.
4. Judicious Enforcement: Peirce’s leadership focuses on strategic and fair enforcement actions that don’t stifle innovation.
5. Public Input: The task force encourages public engagement, soliciting feedback from investors, industry leaders, academics, and other interested parties to ensure a well-rounded regulatory framework.
6. Shift from Enforcement to Clarity: Under Peirce’s guidance, the SEC is moving away from relying solely on enforcement actions and towards creating a comprehensive regulatory framework for digital assets.
7. The “Crypto on the Road” Initiative: From August to December 2025, the US SEC is embarking on a Crypto on the Road initiative. Here, the US SEC is directly engaging with early-stage crypto startups, particularly those with 10 or fewer employees and less than two years of operation. This will help the US SEC bridge long-standing gaps in stakeholder representation and unlock new investment opportunities in under-the-radar projects. This nationwide effort is part of a broader “Project Crypto” strategy aimed at modernizing U.S. financial regulations and fostering innovation. The implications for investors are clear: this regulatory inclusivity is creating a conducive environment for capital to flow into high-potential, yet overlooked, crypto ventures, ultimately driving growth and innovation in the industry.

Overall, Peirce’s leadership has marked a significant shift in the SEC’s approach to crypto regulation, prioritizing clarity, transparency, and collaboration. The result? American innovators are returning to the US to build, innovate, and operate. In record time. Presently, the US SEC is engaging in roadshows.

The Nigeria Central Bank and Crypto Reforms

In Nigeria, the Central Bank’s approach to crypto reforms starkly contrasts with the collaborative and transparent approach adopted by some global regulatory bodies. After lifting the arbitrary ban on cryptocurrency transactions in the banking and financial system, the CBN released guidelines for banks to provide services to Virtual Asset Service Providers (VASPs) in December 2023. While this development is in the right direction and in fact long overdue, this action was taken without engaging in open dialogue—at least none that I know of—with industry stakeholders. This top-down approach is not the best for the effectiveness and practicality of regulations.

Key Aspects of CBN’s Approach:

1. Lack of Industry Input: The CBN did not consult with VASPs before releasing the guidelines, potentially overlooking critical insights and industry expertise and experience.
2. Regulatory Limitations: The guidelines effectively pushed regulatory authority to the SEC, without considering that use cases of crypto in Nigeria are far and beyond investments and securities, extending to local and cross-border payments, remittances, and other use cases that the SEC has no statutory control over.
3. Guidelines Not Addressed to VASPs: While the guidelines concerned VASPs, the guidelines were not directed at VASPs but to banks and other financial institutions, effectively failing to establish a direct relationship between the Central Bank and VASPs themselves. You cannot shave a man’s head in his absence. While the “V” in “VASPs” means “virtual”, one could be forgiven for thinking that it means “virus”—a contagious virus—especially when you consider that till date, there is no single guideline or letter from the Central Bank to VASPs. I think it’s time the Central Bank truly built relationships with players in the sector, not merely issue directives that affect them. The Bank of Ghana established a direct relationship with VASPs in Ghana recently. This is encouraging. Nigeria can also take a queue from this. Bring VASPs to a roundtable, with no strings attached.
4. Lack of Inclusivity: Unlike the US SEC that is including early-stage crypto startups, Nigeria has taken a more top-down approach. In fact, local startups, considering the current registration and licensing requirements, do not have a chance. They must either partner with others or die. An initiative that creates a conducive environment for capital to flow into high-potential, yet overlooked, crypto ventures seems like a healthier approach to me. Compliance burdens particularly for small startups can be overly restrictive and potentially stifle innovation.
5. Absence of a Broader Strategic Approach: While the US SEC’s approach is part of a broader “Project Crypto” strategy aimed at modernizing financial regulations and fostering innovation, Nigeria, on the other hand, has enacted an investments and securities law that classifies all virtual assets as securities, with strict requirements for licensing, anti-money laundering (AML), and know-your-customer (KYC) compliance. The US has strategically avoided such blanket classification, and has in fact started issuing guidelines that address the nuances of virtual assets and their regulatory implications. To further improve clarity and certainty rather than engaging in regulation by enforcement as the former Gary Gensler-led US SEC did, the US has gone ahead to enact two key legislations: The GENIUS Act and the Clarity Act—both benefiting from democratic, open, and rigorous debates that law-making processes ensure.  

Consequences of Regulators Cooking Jollof for Innovators Without Co-Creation?

1. Stifling Innovation: The absence of collaboration and clarity may hinder innovation and growth in Nigeria’s crypto space. You can introduce regulatory frameworks that you consider the best in the world in your wisdom but still struggle to inspire trust and confidence in the business and regulatory investment, thus affecting investments.
2. Increased Risk: Insufficient industry input and unclear guidelines may lead to unintended consequences, such as driving transactions underground or increasing the risk of non-compliance. The seeming police-and-thief approach needs to stop.
3. Regulatory Uncertainty: The lack of transparency and stakeholder engagement may create uncertainty, deterring investment and hindering the development of a thriving crypto ecosystem. Regulation by enforcement needs to also stop.

The benefits, when we cook policies rightly, include increased confidence, improved innovation, enhanced consumer protection, better compliance, and cheaper enforcements.

Looking Forward

Just as Hilda Baci’s record-breaking pot of jollof brought people together, crypto regulation can foster a sense of community and cooperation in the digital asset space. It is not the best cooking policies and regulations alone. By applying Baci’s community approach, crypto regulators can create a more effective and responsive regulatory framework that truly promotes innovation, stability, and consumer protection, not one that merely checks boxes. 

Let’s start making crypto jollof together in a big, round pot for the ecosystem.

You may also be interested in: Clampdowns, Crackdowns, and Shutdowns in Crypto Town: Responsible regulation is what Nigeria needs.

Image: Artistic representation of Hilda Baci cooking jollof using Gemini.