Nigeria to Regulate Cryptocurrency Trading; SEC Says Digital Assets Are Securities
The Securities and Exchange Commission (SEC) of Nigeria will start regulating trade in digital currencies to ensure investor protection and that transactions are transparent. The authorities said on Monday,
“The general objective of regulation is not to hinder technology or stifle innovation, but to create standards that encourage ethical practices.”
The agency said it’ is required to regulate “when the character of the investments qualifies as securities transactions.”
In the past, the West African nation declined to recognize digital currencies as legal tender. In 2018, the Central Bank of Nigeria said that cryptocurrencies, including Bitcoin (BTC), Litecoin (LTC), XRP, Monero (XMR), and Onecoin, weren’t considered money.
The Abuja-based regulator said in a statement that it views digital currencies as exchangeable securities and that the issuers or sponsors of these virtual assets “shall be guided by the commission’s regulation.”
The country is now coming to acknowledge the growing presence of digital assets, and Ayodeji Ebo, managing director at Afrinvest securities in Lagos, said, “the earlier it is regulated, the less havoc on the economy.”
“It’s another way to provide alternative assets to investors,” he told Bloomberg.