Nigeria SEC confirms crypto market oversight, sets rules

Nigeria SEC Set To Regulate Crypto Market Oversight

The Nigeria Securities and Exchange Commission SEC, the country’s financial watchdog, published a press release over the weekend outlining the current situation of the crypto industry in the country. The news release included the adoption of new crypto policies. A portion of the statement disclosed that the financial regulator is able to and will begin conducting supervision tasks over the cryptocurrency space given that the cryptocurrency space falls under its horizon on the basis of the definition of digital assets. The Securities and Exchange Commission of Nigeria has issued new policies regarding the regulation and use of cryptocurrencies. The Securities and Exchange Commission of Nigeria defines a cryptocurrency as “a digital token that the holder might use to designate an equity or a debt instrument.” It has also issued new rules to explain crypto offers, token issuances, and custodial platforms by the Financial Conduct Authority. The Securities and Exchange Commission (SEC) reaffirmed that the new regulations will be “binding on all issuers who use crypto offerings to obtain funds for their ventures.” Additionally, the SEC has indicated that cryptocurrency exchanges are now required to seek operational licenses from the agency, which they can do so here. Before the exchanges can be granted permission to conduct business, they will need to demonstrate that they are prepared to comply by a set of conditions. For example, they are required to have a plan for managing risks and disasters, all of their customers are required to comply with the KYC policy, and the exchanges are required to publish full details of any virtual assets that are listed on their platform. ALSO READ Is LUNA Foundation Currently Offering Purchased Bitcoin At A Discount? Bitcoins Market Reviews: Is Bitcoins Business Scam or Legit? Is LUNA Foundation Currently Offering Purchased Bitcoin At A Discount? In addition, the exchanges are required to provide the SEC with information regarding their security infrastructures, such as the specifics of their escrow arrangements with their custodians, as well as the technical support and other security frameworks that they have implemented. In addition to this, the SEC ruled that no Nigerian cryptocurrency exchange may engage in the issuance or transfer of digital assets unless it first has all of the necessary licenses and authorization. A portion of the 54-page report stipulates that all exchanges must have a fidelity bond of at least 25 percent and at least 500,000 naira (about $1,204) in paid-up capital. This requirement is effective immediately.

New Listing Terms for Tokens on Cryptocurrency Exchanges in Nigeria

For new digital tokens to be listed, the SEC stated that exchanges would need a “no objection” letter from it. In addition to this, the SEC has specified the minimum amount of investment capital required for initial coin offerings (initial coin offerings). The Securities and Exchange Commission (SEC) stated that the maximum investment amount for retail investors is 200,000 naira, with a total annual investment of 2 million naira allowed for each issuer. However, the SEC did not mention any limits for institutional investors or high-net-worth individuals. Nigeria is one of the most populous countries in Africa; as a result, Nigerians, particularly the younger generation, have shown an enormous interest in adopting cryptocurrency, just as people are doing in the majority of other developed economies. As a result, the country’s financial authority is taking steps to ensure that the crypto industry in the country is properly regulated.

A Conflict With A Previously Implemented Policy

The new regulations that have been issued by Nigeria’s Securities and Exchange Commission run counter to the crypto policy that has been issued by Nigeria’s central bank (CBN). The most important bank in the country decided to outright prohibit any and all transactions related to cryptocurrencies, which led to an increase in the number of P2P transactions. Even though the actions of the central bank stifled crypto innovation, it’s possible that the nation’s Securities and Exchange Commission is taking this new step because those actions didn’t stop or reduce the massive adoption of cryptocurrencies among Nigerians. However, the CBN has not yet issued a statement regarding the new regulations that were published by the SEC. CHECK OUT https://www.gistlobby.com.ng/category/mlm-or-forex-reviews/  

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