The Nigerian SEC may be set to give the booming crypto industry a real chance to flourish. This follows after the Securities and Exchange Commission (SEC) of Nigeria published a rulebook it called, “New Rules on Issuance, Offering Platforms and Custody of Digital Assets,” over the weekend. And for all intents and purposes, the rulebook may have also covered every necessary aspect of the crypto industry. Thus, providing guidance and a clear regulatory framework for issuers, exchanges, and investors of digital assets altogether.
Digital Assets Are Under Our Jurisdiction — The Nigerian SEC
Meanwhile, the SEC also tried to confirm its role in all of this. In the rulebook, the regulator likens a digital asset to a token of assets, which has an equity or debt claim on the issuer. Thus, directly placing them under its purview as an agency.
Additionally, the new rules also stipulate that for exchanges to be registered in Nigeria, they must have at least $1,204 in paid-up capital. That’s approximately 500,000 Nigerian Naira at press time. Also, the exchanges are required to post a fidelity bond of no less than 25% of the paid-up capital requirement. And that’s all about registration.
Speaking about operations, the SEC says that all exchanges are required to be “fair, reasonable, and transparent” with their charges. This means that there can’t be any hidden fees or any shady transactional costs.
However, about their listings, exchanges will have to face serious scrutiny from Nigeria before they can trade some assets. That is, they must first submit a list of assets they want to list to the SEC. Thereafter, they must wait in order to get a “no objection” response for each of those assets.
Nigeria Open To Innovation
From all indications, this recent move by Nigeria seems to show the nation’s readiness to fully support innovation and blockchain technology.
Recall that in September, the Nigerian SEC announced that it had created a special department to study crypto investments.
Without a doubt, the Nigerian crypto market continues to show amazing growth on a yearly basis. But the new rulebook will surely go a long way in lending clarity to the already blossoming market.