SEC to only support Investments in sensible digital assets and not Cryptocurrencies
Nigeria’s Securities and Exchange Commission (SEC) states that cryptocurrencies do not factor into its push for digital assets trading. According to the regulator, it will only support investment in sensible digital assets.
It was reported by Bloomberg, that the Commission will not cover cryptocurrencies in its upcoming regulatory framework. It was reported that the impending framework is geared towards improving the trading of digital assets and protecting investors in the country.
According to Lamido Yuguda, the DG of the Commission while addressing the media in Lagos; the regulator is steering clear of crypto exchanges, as it does not have access to the required banking platforms needed to drive the trade, in the country.
He added that the Commission is concentrating on digital assets that really protect investors, as they are in the business of protecting investors and not in the business of speculating.
This caution might be due to the fact that the Central Bank of Nigeria (CBN) in early 2021, banned financial institutions in the country from offering services to digital asset businesses, and warned the investing public against crypto and crowdfunding platforms.
The DG however, said that the Commission may support crypto in the future, as digital market develops in the country and standards are agreed upon.
Nigeria and Digital currencies
Nigeria is still quoted as Africa’s biggest digital currency market. According to reported data, the nation is responsible for most digital currency transactions, outside of the United States.
Nigeria was ranked 11th in the world this year by Chainalysis, for global adoption, ahead of the United Kingdom and Indonesia.
The digital currency adoption by Nigerians, far outweighs that of the nation’s Central Bank Digital Currencies (CBDC) e-Naira, introduced by the CBN.
This clarification by the DG of SEC is necessary, to address certain questions raised on bitcoin adoption in the country, since SEC’s published digital asset guidance in May, this year.
