A couple of years ago, just like many governments in Africa, Nigeria’s government agencies declined to recognize digital currencies as legal tender. Though it was not out-rightly banned, the central bank warned banks against transacting in digital cryptocurrencies. It seems the agencies are still doing more in this regard.
According to a Bloomberg report, the countries’ Securities and Exchange Commission (SEC) is now moving to regulate cryptocurrency trading to protect investors, “Issuers or sponsors of virtual digital assets shall be guided by the commission’s regulation,” Bloomberg quotes the SEC’s statement.
The issuers or sponsors will be required to register their digital assents with the commission, which will be treated as securities unless the company proves otherwise. The regulations also extend to foreign issuers targeting Nigerian investors.
“The general objective of regulation is not to hinder technology or stifle innovation, but to create standards that encourage ethical practices,” the agency says.
Nigeria is among the top countries for digital currencies globally and the leading country in peer-to-peer bitcoin trading volumes in the Sub-Saharan Africa region at about $9.8 million according to recent data from Bitcoin.com.
New Album: Apollo Brown & Che’ Noir -As God Intended