16 September 2020
Nigeria Security and Exchange Commission (SEC) don decide to dey regulate digital assets like cryptocurrency for di west African nation.
Dis ground breaking statement surprise many as e be say di Central Bank of Nigeria don draw ear before give kontri pipo say dealers and investors in any kind of crypto currency in Nigeria no dey protected by law, according to one CBN circular on 28 February, 2018.
Nigeria Security and Exchange Commission wey goment create since 1962 to take care of applications from companies wey wan raise money from di capital market, tok say dem dey control alias regulate di market so dat e go dey fair and efficient for pipo to invest.
Cryptocurrencies don dey make waves for Nigeria no be today even as outside Nigeria, many pipo don show di greatest interest in cryptocurrency world wide.
See six important tins you suppose know about di cryptocurrency control alias regulations inside Nigeria
Cryptocurrency dey only regulated as digital investments
Di SEC don announce say dem go treat evri crypto asset as securities, except di issuer or di sponsor prove say e no be am.
So e mean say pesin wey wan use im crypto asset to store money (asset) or as medium of exchange go need prove am.
Di statement say dem go that say na commodities if na Recognized Investment Exchange dey sell am or dem dey trade am as method of investment.
Dem catergorize dem to
- Crypto asset (wey be currency no goment dey control)
- Utility Tokens or “Non-Security Tokens”
- Security tokens
- Derivatives and Collective Investment Funds
- of Crypto Assets, Security Tokens and Utility Tokens
Pipo wey dem go control (regulate)
SEC don announce say evri pesin wey dey involved in di Block-chain process go get registered with di commission to dey under im guideline.
Dis one mean say pipo wey dey involved in di process like pipo wey dey do reception, transmission and execution of orders on behalf of other pipo, dealers on own account, portfolio management, investment advice, custodian or nominee services.
But dem don give di pipo wey dey already dey operation before regulation three months to sort am out
Dem also announce say dem go register and regulate Issuers and Sponsors weda local or foreign as foreign issuers and sponsors go need to open branch office for Nigeria.
Foreign digital investments go dey regulated
As we don tok before, foreign issuers and sponsors go dey registered as entities under di SEC wey go regulate dia activities.
But according to di statement, dem go give recognition to any issuer or sponsor if di kontri wey dem dey from come be member of di International Organization of Securities Commissions (IOSCO).
Who no go dey regulated
According to statement wey SEC release, dem say any digital assets wey dey made for only crowdfunding uses or dey used as money for transactions go dey exempted.
Dem tok say oda exempt method dey but dem no tok wetin e be.
But SEC tok say any pesin wey deal with dis digital assests under dis conditions go still need do initial assessment filing and na dem go decide if dem be securities.
Why dem wan regulate
Dem say na to protect investors dem and di interest of di public as well as to improve market integrity and transparency.
E never too tay wen SEC release statement wey tell pipo say make dem dey careful of crypto currency to avoid tori wey go touch.
How di regulation go take happun
Di Security and Exchange Commission dey use two steps to take register virtual assets, wetin dem dey call “two-prong approach.”
Di first na to do initial assessment filing to determine if na securities and then di filing for registration of di securities proper.
Wetin be Cryptocurrency?
Cryptocurrency na digital asset or money wey no government for world dey regulate or control and di value dey come from di online community wey dey use am and dey bound by block chain wey no wan pesin get control over na all di users. Also di formation dey come wen pesin “mine” am through di use of special computer codes.
For Nigeria na two particular kind of cryptocurrency na im dey popular: Bitcoin and Ethereum.
Bitcoin na money but you no fit see am. Dem dey call am digital virtual currency and na for 2009 na im one person, Satoshi Nakamoto create am. Nobody know who that person be till today.
Ethereum alson na money but you no fit see am although e dey live inside online cryptocurrency wallets. Dem dey call am digital virtual currency and na for 2015 one person, Vitalik Buterin launch am with 75 million coins. As at April 2020, 60% of that money don enta circulation