Nigeria moves to regulate crypto currencies, other digital investments

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Nigeria’s Securities and Exchange Commission (SEC) on Monday announced that it would begin to regulate digital currencies and crypto-based companies.

A statement by SEC said the general objective of regulation is not to hinder technology or stifle innovation but to create standards that encourage ethical practices that ultimately make for a fair and efficient market. The Nigerian government had in the past described digital currencies as illegal and warned its citizens against it. The crypto-coin investment environment in Nigeria has, thus, been devoid of extant regulation, despite a surge in peoples’ interest in the digital offerings.

According to the 2020 Global Crypto Adoption Index compiled by blockchain data analytics firm, Chainalysis, Nigeria ranked highly among other countries where cryptocurrency adoption was quite significant. Nigeria was ranked alongside Ukraine, Russia, China, South Africa, Kenya, and the U.S. – all countries listed among the top-ranking countries by cryptocurrency adoption.

The capital market and investment regulator on Monday said digital assets provide alternative investment opportunities for the investing public and it therefore becomes essential to ensure that they

“operate in a manner that is consistent with investor protection, the interest of the public, market integrity and transparency”.

Section 13 of the Investment and Securities Act, 2007 conferred powers on SEC as the apex regulator of the Nigerian capital market to regulate investments and securities business in Nigeria, it said. In line with these powers, SEC said on Monday that it has adopted a three-pronged objective to regulate innovation, hinged on safety, market deepening and providing solution to problems.

Based by allafrica.com