Nigeria’s SEC Defines All Digital Assets as Securities in Updated Rulebook
The Securities and Exchange Commission of Nigeria published a new rulebook over the weekend, in which it describes a digital asset as a token that represents assets such as a debt or equity claim on the issuer, and thus by default is under the purview of the regulator.
The Nigerian SEC’s “New Rules on Issuance, Offering Platforms and Custody of Digital Assets” circular aims to provide some regulatory clarity to the booming crypto market, which has experienced dramatic growth year-on-year in a nation of young and tech-savvy people.
In-country registered exchanges need to be capitalized with at least NGN 500,000 ($1,204) in paid-up capital, and in addition post a fidelity bond for at least 25% of the amount, the rules clarify.
While ambiguous and open for interpretation, the updated SEC rulebook also dictates exchanges to be “fair, reasonable, and transparent” with their fees. Furthermore, registered exchanges will have to provide the SEC with a list of assets they intend to offer to receive a “no objection” letter for each asset, prior to listing.
Nigeria’s young, well-educated and resourceful population and the commonplace that the internet, online mobile phone usage and payments has been for years, has created the right playing field for the introduction and fastened adoption of bitcoin to benefit from, with many considering Bitcoin and other cryptocurrencies as ‘Freedom Money’.
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Source: igaming
