Nigeria Leads Africa in Regulating Digital Asset Space — Securities Regulator – Regulation Bitcoin News

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. He also clarified the roles of the Nigerian Securities and Exchange Commission and central bank in regulating digital assets.

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.

Obisan stated in comments to Nairametrics that the Securities and Exchange Commission of Nigeria’s (SEC) objective is to provide an environment for digital assets players to thrive, while also protecting 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). The new rules regulate the issuing of digital assets and securities, according to Bitcoin.com News. These regulations include requirements regarding the registration of digital asset trading 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. Many players within the Nigerian market for digital assets have stated that they are not able to agree on the regulation of digital resources due to seemingly contradictory statements by regulators.

As an investment tool, digital assets

Obisan, however, tried to clear up the confusion during Nairametrics’ webinar by clarifying each regulator’s role. Obisan stated:

It is changing. Our classification of digital assets was not finished. As you know, there is fungibility when using the crypto asset, the language or cryptocurrency. It all depends on how it’s used. 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. However, if it’s used to invest in it, it belongs rightfully to us.

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. Emefiele, however, has yet to respond to our request at the time we write.

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Terence Zimwara

Terence Zimwara, a Zimbabwean journalist, writer and author who has been awarded the Zimbabwe Booker Prize. His writings have covered the economic problems of several African countries and how digital currency can offer an escape route.