Home Business Nigeria’s market regulator publishes rules regarding crypto assets from Reuters

Nigeria’s market regulator publishes rules regarding crypto assets from Reuters

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© Reuters. PHOTO FILE: View shows the headquarters of the Central Bank of Nigeria in Abuja, Nigeria, November 22, 2020. Photo taken on November 22, 2020. REUTERS / Afolabi Sotunde / Photo file

LAGOS (Reuters) – Nigeria’s market regulator has released a set of rules for digital assets, signaling that Africa’s most populous country is trying to find a middle ground between a total ban on crypto assets and their unregulated use.

Last year, the Central Bank of Nigeria banned banks and financial institutions from engaging in or facilitating digital currency transactions.

But the country’s young, technology-savvy population has been eager to adopt cryptocurrencies, for example, using peer-to-peer trading offered by cryptocurrencies to avoid a ban on the financial sector.

The Securities and Exchange Commission of Nigeria (SEC) has published on its website “New rules for the issuance, placement of platforms and preservation of digital assets”.

The 54-page document sets out the requirements for registering offers and custodians of digital assets, and classifies assets as SEC-regulated securities.

A central bank spokesman did not answer calls on his mobile phone.

The SEC has said that no digital asset exchange will be allowed to facilitate asset trading unless it receives a “no objection” ruling from the commission.

The digital asset exchange will have to pay 30 million naira ($ 72,289) as a registration fee, among other fees.

In October, Nigeria launched a digital currency, eNaira, in hopes of expanding access to banking services. Official digital currencies, unlike cryptocurrencies such as bitcoin, are supported and controlled by the central bank.

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