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The legal views of cryptocurrencies and crypto-assets in Nigeria are in the authority of the Securities and Exchange Commission, SEC.
The organization backs the regulation of cryptocurrency in Nigeria with Section 13 of the Investment and Securities Act, 2007.
SEC considers a cryptocurrency and crypto-assets as digital models of a thing with value. Even without a legal tender status in Nigeria, if it functions as a medium of exchange, an accounting system, a property with a value, it is a digital asset according to the SEC.
Consequently, it is treating cryptocurrency and all virtual crypto assets in Nigeria as security which calls for regulation. It does not consider the virility of cryptocurrencies and blockchain technology in the country a threat rather potentially advantageous.
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SEC is handling the cryptocurrency sector in Nigeria with the regulation of three edges – the strategy, regulations and transactions of the market.
Cryptocurrency registration in Nigeria
The speed of cryptocurrencies in as little as three years is provoking regulations around the world. Startups who run crypto securities must properly register with the SEC whether directly by the issuer or guarantor.
In the current state, any digital assets offerings in existence before the SEC regulatory guidelines are required to tender an initial assessment filing of documents for proper registration.
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What will the SEC regulate on Nigeria
Digital Assets Token Offerings (DATO), Initial Coin Offerings, Blockchain-related activities and Security Token ICOs within Nigeria will be regulated by the SEC. If the issuer is a foreigner that targets Nigerian investors, the SEC will also regulate it.
The SEC could also require all issuers, both local and foreign companies to establish an office within Nigeria. It is giving foreign issuers from a country with a mutual understanding with Nigeria adequate recognition.
Member of the International Organization of Securities Commissions (IOSCO) also gets recognition from the SEC.
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