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Nigeria Leads Africa in Regulating Digital Asset Space — Securities Regulator

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Nigeria has taken the lead in regulating digital assets in Africa and is one of the countries actively pursuing the governance of the digital asset space, the chief executive of the country’s securities regulator said. The director also clarified the various regulatory roles played by the central bank and the Nigerian Securities and Exchange Commission (SEC).

Investor protection

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According to the chief executive of Nigeria’s securities regulator, Dayo Obisan, his country “leads Africa in terms of rule-making and regulation in the digital asset space.” On a global scale, Nigeria is one of the countries that are carefully studying this space, Obisan said.

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In comments published Obisan said the goal of his organization, the Nigerian Securities and Exchange Commission (SEC), is to create an operating environment that allows players in the digital asset space to flourish while still protecting investors.

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

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

Digital assets as an investment tool

However, speaking during a webinar hosted by Nairametrics, Obisan tried to clear up the confusion by clarifying the respective roles of each regulator. He said:

The regulatory space is evolving. Even after we came up with our own classification of digital assets. You know that there is interchangeability in the use of language, crypto assets and cryptocurrency, so it depends on the use. When something is fiat – fiat is money – we use it as a medium of exchange, which is the exclusive priority of the Central Bank of Nigeria. But when it is used as an investment vehicle, it falls right into our laps.

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

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Credit : news.bitcoin.com

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