Nigerian SEC Released Set Of Proposed Crypto Regulations

The Nigerian SEC just released a set of the proposed cryptocurrency regulations guidelines while classifying the crypto assets as securities as we are reading more in today’s crypto regulation news.

The Securities and Exchange Commission or the Nigerian SEC, released the proposed set of regulations and according to an official release, they announced that the regulatory body is looking at a three-pronged approach towards regulating crypto markets and the crypto industry. The SEC also stated that the goal of the proposed regulation was to promote market efficiency and transparency which don’t impede the nascent technology.

A year ago, the regulatory body set up a committee to develop a guideline that will see the inclusion of cryptocurrency and blockchain technology on the capital market in the country. The latest development shows that the country is willing to make more steps in the emerging market. The Nigerian watchdog sees crypto assets as securities unless the sponsors of the issuers can come up with the proof of the contrary. According to the commission, the issuers will have to go through an initial assessment phase to prove that cryptocurrencies are securities.

However, if the SEC is not convinced, the parties involved will have to register the crypto with the commission. Also, foreign-based startups that will want to conduct any activity in Nigeria will have to setup a local base in the country. The regulator provided a primer on the likely state of its crypto regulatory activities:

 “Any person, (individual or corporate) whose activities involve any aspect of Blockchain-related and virtual digital asset services, must be registered by the Commission and as such, will be subject to the regulatory guidelines. Such services include, but are not limited to reception, transmission, and execution of orders on behalf of other persons, dealers on own account, portfolio management, investment advice, custodian, or nominee services.”

The proposed crypto regulation is the first one in Nigeria which moves away from the previous negative sentiments expressed by the government. While regulating cryptocurrencies is new in the country, there’s a growing interest in Bitcoin and other assets among the people who live there. In a new report, the platform saw a 60% increase in the web wallet since April. Google Trends data shows that Nigeria is the number one country in terms of BTC interest in the past 90 days.

Bitcoin also saw increased usage in Nigeria because of the high poverty rate in the country. Other factors include Bitcoin’s popularity and its use in cross-border transactions.