Skip to main content

Nigeria Leads Africa in Regulating Digital Asset Space — Securities Regulator

Nigeria has taken the lead in regulating digital assets in Africa, and is one of the countries looking keenly into governing the digital asset space, an executive director with the country’s securities regulator has said. The director also made clarifications on the different regulatory roles played by the central bank and the Nigerian Securities and Exchange Commission (SEC).

Protecting Investors

According to the executive director of Nigeria’s securities regulator, Dayo Obisan, his country is “leading in Africa in terms of making the rules and regulating into the digital asset space.” Globally, Nigeria is one of the countries keenly looking into that space, Obisan claimed.

In comments published by Nairametrics, Obisan said the objective of his organization, the Securities and Exchange Commission of Nigeria (SEC), is to create an operating environment that allows players in the digital asset space to prosper but one that also protects investors.

The remarks by Obisan concerning the SEC’s regulation of digital assets come just over two months after his organization announced a new set of rules to govern the use of cryptocurrencies as well as the activities of virtual asset service providers (VASPs). As reported by Bitcoin.com News, the new rules govern the issuance of digital assets as securities. The regulations also include rules on the registration requirements for digital asset offering platforms (DAOPs), VASPs, and digital asset exchanges.

The SEC director’s comments come at a time when questions over which body, between the SEC and the Central Bank of Nigeria (CBN), should regulate cryptocurrencies continue to linger. Some players in the Nigerian digital asset space have said the seemingly conflicting statements issued by the two regulators suggest they do not see eye to eye when it comes to the regulation of digital assets.

Digital Assets as an Investment Tool

However, when speaking during a webinar organized by Nairametrics, Obisan attempted to address the confusion by clarifying the respective role of each regulator. He said:

The regulatory space is evolving. Even after we came up with our classification of digital assets. You know there is this fungibility in the use of the language, crypto assets and cryptocurrency, so it depends on the usage. When anything is a fiat – fiat is money – we use it as a means of exchange, that is an exclusive precedence from the Central Bank of Nigeria. But when it is used as an investment tool, then it falls squarely on our lap.

After the SEC unveiled the latest set of rules governing the digital asset space, Bitcoin.com News sought CBN governor Godwin Emefiele’s reaction to the announcement. However, at the time of writing, Emefiele has not responded to our inquiry.

Register your email here to get a weekly update on African news sent to your inbox:

What are your thoughts on this story? Let us know what you think in the comments section below.



from Bitcoin News https://ift.tt/98cdYha
Labels:

Comments

Post a Comment

Popular posts from this blog

Mt Gox Creditors Updated, Trustee Says Rehabilitation Custodian Is ‘Currently Preparing to Make Repayments’

On August 31, 2022, the Mt Gox trustee Nobuaki Kobayashi explained in a recent letter that the rehabilitation custodian is “currently preparing to make repayments” to Mt Gox creditors. Trustee Updates Mt Gox Creditors — Repayment Date and Exchange Still Unknown Last week speculation and rumors concerning the release of 140K bitcoin ( BTC ) from Mt Gox littered social media platforms and headlines. Bitcoin.com News covered the situation six days ago as a number of people and Mt Gox creditors called the rumors “ fake news .” During that same period of time, a bitcoin whale transferred 10,000 BTC to unknown wallets, and a 2018 annotation , heuristics, and clustering methods show the funds likely originated from the June 2011 Mt Gox hacks. Following the mysterious whale transfer, last Wednesday, Mt Gox published an official update from the court trustee Nobuaki Kobayashi that explains the court is “currently preparing to make repayments” to creditors. Mt Gox creditors have been wait...
Post a Comment
Read more

Economists Discuss Russia, China Potentially Developing Gold-Backed Currency That Could Undermine US Dollar

Economists have weighed in on reports that China and Russia may be developing a new gold-backed currency that could undermine the U.S. dollar’s status as the world’s primary reserve currency. Russia and China May Be Developing Gold-Backed Currency Several experts have shared their views on Russia and China potentially creating a new gold-baked currency, Fox Business reported Saturday, emphasizing that China has been buying up huge quantities of gold while Russia was forced off the U.S. dollar due to sanctions imposed on the country following its invasion of Ukraine. The news outlet noted that some experts have cautioned that these moves, along with the closer relationship that has developed between Moscow and Beijing, point to the likelihood of China attempting to launch a gold-backed currency. However, neither Russia nor China has officially confirmed plans for such a currency. Craig Singleton, senior fellow at the Foundation for Defense of Democracies and a former U.S. diplomat,...
Post a Comment
Read more

Fidelity Discusses Bitcoin as Portfolio Insurance — Could Soon Stand in ‘Stark Contrast’ to Path Fiat Currencies Take

Fidelity Digital Assets, a subsidiary of Fidelity Investments, says that bitcoin could be considered portfolio insurance. The firm notes that the cryptocurrency “may soon stand in stark contrast to the path that the rest of the world and fiat currencies may take — namely the path of increased supply, additional currency creation, and central bank balance sheet expansion.” Fidelity Says Bitcoin Could Be Portfolio Insurance Fidelity Digital Assets, a subsidiary of Fidelity Investments, recently published a research study titled “The Rising Dollar and Bitcoin.” The research outlines “how bitcoin could be considered portfolio insurance” as the rising dollar impacts global currency markets. “The strengthening U.S. dollar is wreaking havoc among other countries and may put pressure on the Federal Reserve to soon reverse its tightening monetary actions, something that has precedent based on 1985’s Plaza Accord,” Fidelity explained. In addition, “more monetary debasement may be needed to ...
Post a Comment
Read more