The fastest-growing trade and investment option in Nigeria with some coverage are crypto investments. The Securities and Exchange Commission (SEC) is putting some measures in place to regulate cryptocurrency without having to interrupt or liquidate technology and innovation.
SEC acknowledges the potential in cryptocurrency technology. Rather than ban it in Nigeria, it is deciding to develop friendly measures to regulate it.
It will guide the strategy, regulations and transactions of cryptocurrency investment. This will ensure that investors get accurate results from investments.
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The “SEC will regulate crypto-token or crypto-coin investments when the character of the investments qualifies as securities transactions” according to a statement by the commission.
Backed by Section 13 of the Investment and Securities Act, 2007, the SEC has the power as the apex regulator of the Nigerian capital market to regulate investments and securities in Nigeria.
With the safety element in mind, the SEC is going to ensure the cryptocurrency offerings are tailored to suit investors. More so, it will ensure that the offering functions in a transparent and legitimate manner to suit the general public.
What the SEC regulate in the cryptocurrency market in Nigeria
The cryptocurrency market functions with delivery, reception and execution of orders and whether it is on the behest of someone else, it will regulate these activities.
More so, the commission considers all security features – portfolio management, investment advice – regulatory items.
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