Absa Praises SEC for Proactive Regulation of Digital Assets –
Absa Nigeria, a leading pan-African bank with a strong footprint on the African continent, commended the Nigerian Securities and Exchanges Commission for proactively providing a regulatory framework for digital asset investment and trading, including cryptocurrencies.
Sadiq Abu, CEO of Absa Nigeria, said so during the “Power Lunch Show” on CNBC Africa on Monday.
Abu also praised the commission for recognizing digital assets as securities.
SEC, Nigeria’s capital market regulator, issued a new guideline on the issuance, platform offering and custody of digital assets over the weekend, fulfilling a promise made last year to review digital currency to better understand and develop regulations to protect investors.
He said, “SEC has decided to be proactive when it comes to cryptocurrency and digital assets.
“The SEC realized that these are rightly called securities and further created a framework to integrate them into the broader securities regulatory framework in Nigeria.”
According to Abu, the SEC also created a framework to protect investors by requiring investments to be held by digital asset custodians and recognized that exchanges or digital asset trading platforms should be regulated.
He said: “There is also an overarching framework to regulate all participants who play in the digital asset space through a specialized license called a virtual asset service provider.”
He pointed out that a new rule stipulating the tenure and other qualifications of the managing director and key executives of digital asset offering platforms was similar to the regulations of the Central Bank of Nigeria.
According to him, this clearly indicates that the SEC and the CBN have worked together to develop the new framework for operating digital assets.
He said: “There is clear evidence that the SEC is working hand-in-hand with the CBN to create a regulatory framework for the operation of digital assets and that regulation of CEOs and key executives falls under the broader regime of Qualified Persons. the SEC.”
Absa offers investment banking and market products through its various Nigerian registered subsidiaries, namely Absa Representative Office Nigeria Limited, Absa Capital Markets Nigeria Limited and Absa Securities Nigeria Limited.