The Nigerian government wants to clarify the role of cryptocurrencies in their country’s economy. Moreover, they plan to create a regulatory framework for trading exchanges that offer digital assets.
Nigeria wants to regulate crypto
The Securities and Exchange Commission of Nigeria (SEC) said in a new rulebook published over the weekend that a digital asset is merely a representation of an asset such as a debt or capital claim against an issuer.
According to Nigerian officials, issuance, platforms, and safekeeping of digital assets in the circular will provide greater regulatory transparency to the booming cryptocurrency market.
According to the new guidelines in the recently released document, digital asset exchanges registered in the country must be capitalized by at least NGN 500,000 ($1,204) and have a bond of at least 25% of that amount. Capitalization refers to the amount raised or paid up as a result of the equity offering.
In addition, the Nigerian Securities and Exchange Commission requires exchanges to be “fair, reasonable, and transparent” about fees.
Furthermore, registered platforms will have to provide the SEC with a list of the assets they intend to trade and receive a “no objection” letter for each asset.
The work started in September
The Nigerian Securities and Exchange Commission said in September that it had set up a specialized branch to study cryptocurrency investments. A new division would be looking at cryptocurrency investments and products, and developing regulatory guidelines to help protect investors. Lamido Yuguda, CEO of the SEC, commented:
In order to help investors protect their blockchain investments, we are closely monitoring this market.
According to Yuguda, the SEC considers all crypto assets “to be securities unless proven otherwise” and will get into the regulated digital currency marketplace once cryptocurrencies are integrated into Nigerian banks.