The Nigerian SEC believes that it is well equipped to regulate cryptocurrencies after proposing a set of guidelines for crypto assets as we reported in the recent crypto news.
According to new reports, the Securities and Exchange Commission, the Nigerian SEC, published a proposed set of regulations for the cryptocurrency and blockchain space, outlining the importance of regulation. Commenting on the development, Emomotimi Agama, the head of the market infrastructure and innovation at the Nigerian SEC believes that the regulator is determined to provide a safe investment environment that is comfortable for all of the market participants in the sector. In 2019, the Commission called for the regulatory framework for the blockchain and the virtual asset industry during and to also set up a “FinTech Roadmap” committee to oversee the developments.
Agama explained that the SEC discovered that more people are entering the crypto space which is why regulation is needed. With the Nigerian crypto industry continuously growing, new people on the market are losing money to scams and fraudulent crypto schemes. According to Agama, this is what makes it important for the SEC to live up to the expectations of the investors as more and more people are joining the sector.
Agama added that the SEC Nigeria conducted research before “coming out with the initiatives” and that the commission is working with Cambridge Centre for Alternative Finance as well as the World Bank and other institutions to ensure that the Nigerian crypto space will be guided with basic principles:
“We will not leave any stone unturned, but ensure that everyone within the SEC has the responsibility to guiding investors and the populace in making sure we have an investment environment that people will be proud of is provided. Capacity building is a continuous exercise; we will continue to upgrade ourselves, we will continue to learn because knowledge is for life.”
In the proposed guidelines, the Nigerian SEC said it will treat cryptocurrencies as commodities when these assets are issued or traded at SEC-approved trading platforms like the national stock exchange. The Commission will regulate all forms of token sales which qualify as securities investments including digital asset tokens offering, initial coin offerings, and security token offerings as well. Blockchain companies will also be expected to register with the SEC and are subject to the regulation.
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