Nigeria, Africa’s most dense country based on population, seemingly had a sudden change of heart regarding its views towards cryptocurrencies. Turning a complete 180 to its initial adverse approach towards cryptos, Nigeria has now announced that its Securities and Exchange Commission (SEC) will start regulating cryptocurrencies.
As per the statement released by the Nigeria SEC, the ultimate goal of this regulation is to safeguard investors and to promote the industry standards within the country. It clarified that it isn’t here to hold back the industry’s technology and innovation, but instead encourage ethical and regulated practices. As per the boundaries of its regulation, Nigeria SEC stated that it would only supervise investments that qualify as securities – and that is where the problem lies.
According to Nigeria SEC, all cryptos are securities by default, implying that it would indeed have full reign over the regulation of all cryptos within the country. A burden of proof will then be required to convince the regulators that the issuer’s assets do not belong to the securities category. Unless proven otherwise, all cryptocurrencies circulating within Nigeria must adhere to the country’s SEC’s regulatory rules and approval.
Experts also see this move by the Nigeria SEC to better control the crypto offerings from overseas. With this new development, issuers established outside the country without the agreement for reciprocal investments, such as the United States, may feel obligated to create a local branch to continue operating smoothly within Nigeria.