September 29, 2020

Nigeria's regulator equates virtual currencies to securities

On September 14, Nigeria's National Securities and Exchange Commission (SEC) released guidance on regulating cryptocurrencies by classifying them as securities.

In the message posted on the commission website,The regulator clarified that it classified virtual currencies as securities in accordance with the regulation of the 2007 Nigeria Securities and Investments Act.

The focus of the guide is on releasedigital currencies, namely Initial Coin Offering (ICO), Digital Asset Token Offering (DATO) and Security Token Offering (STO).

It is also noted that cryptocurrency trading will be regulated by:

“Any individual or legal entity whose services are relatedusing blockchain and digital assets must be registered with the Commission. Companies that receive and transmit digital currencies on behalf of others, investment funds, consulting companies and providing wallet services will be regulated, ”the SEC said in a statement.

Prior to the enactment of regulations, the regulator gives companies 3 months to submit registration documents.

It is worth noting that a committee to develop guidelines for the inclusion of cryptocurrency and blockchain technology in the country's securities market was created by the SEC in September 2019.