On September 14, Nigeria’s National Securities and Exchange Commission (SEC) published guidelines for regulating cryptocurrencies, classifying them as securities.
In a publication on the Commission’s web page, the regulator clarified that it classified virtual currencies as securities in accordance with the 2007 Nigerian Securities and Investments Act regulation.
The focus of the guide is on the issuance of digital currency, specifically 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 individuals or legal entities whose services are related to the use of blockchain and digital assets must be registered with the Commission. Companies that receive and transmit digital currencies on behalf of others, investment funds, consulting firms, and such that provide wallet platforms 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 introduction of cryptocurrency and blockchain technology in the country’s securities market was created by the SEC in September 2019.
