Nigeria Securities and Exchange Commission (SEC) published rules on issuance, offering platforms and custody of digital assets
Nigeria’s Securities and Exchange Commission (SEC) Issues Crypto Rule
Nigeria market regulator has produced a set of digital asset regulations, indicating that the continent’s most populous country is attempting to strike a balance between outright bans on crypto-assets and their unregulated use.
Last year, Nigeria’s central bank prohibited banks and financial organizations from trading in or assisting in digital currency transactions.
On its website, the Nigeria market regulator announced the “New Rules on Issuance, Offering Platforms, and Custody of Digital Assets.”
New Rule For Digital Asset Exchanges
The 54-page document establishes registration requirements for digital asset offers and custodians, as well as classifies the assets as securities subject to SEC regulation.
A representative for the central bank did not return phone calls.
The SEC stated that no digital asset exchange would be permitted to facilitate asset trading unless the commission had issued a “no objection” finding.
A digital assets exchange will be needed to pay a registration cost of 30 million naira ($72,289), among other fees.
Extending Nigeria Banking Access
Nigeria launched the eNaira, a digital currency, in October with the hopes of extending banking access.
Digital currencies are backed and managed by the central bank, unlike cryptocurrencies like Bitcoin.
Nigeria’s young, tech-savvy population has embraced digital currencies enthusiastically. Despite a Central Bank ban on banks and financial institutions trading in or assisting cryptocurrency transactions, cryptocurrency use has exploded.
An avid bitcoin user stated that the uncertainty will keep him on the sidelines for the time being.
His main fear is whether he will be able to simply convert eNaira to local cash.
