THE Securities and Exchange Commission (SEC) has published cryptocurrency rules for the Nigerian market, outlining the laws and requirements for traders, and the authority is seeking N30 million in order to function as an exchange.
The set of digital asset regulations is an attempt to strike a balance between outright bans on crypto-assets and their unregulated use.
The Central Bank of Nigeria (CBN) prohibited banks and financial institutions from trading with or assisting digital currency transactions last year.
However, Cryptocurrency trade still continues to thrive despite the ban. As a result, tech-savvy Nigerians began to use cryptocurrencies, such as peer-to-peer trading facilitated by crypto exchanges, to circumvent the financial sector ban.
On its website, the SEC published “New Rules on Issuance, Offering Platforms, and Custody of Digital Assets,” a 54-page document outlining registration requirements for digital asset offers and custodians.
The SEC stated that no digital asset exchange would be permitted to facilitate asset trading unless the commission had issued a “no objection” finding.
A digital assets exchange will be required to pay a registration cost of N30 million ($72,289), among other fees.
Nigeria launched the eNaira, a digital currency, in October with the hopes of extending banking access. Unlike cryptocurrencies like bitcoin, other official digital currencies are backed and managed by the central bank.
