Nigerian market regulator releases set of rules for digital assets

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The Nigerian market regulator published 54 pages of digital asset regulationas the country could reverse an earlier ban on cryptocurrencies.

Last February, the Central Bank of Nigeria (CBN) issued a letter asking regulated financial institutions in the country to “immediately” close accounts linked to cryptocurrency-related activities, The Block reported at the time.

Yet, Nigeria’s young, tech-savvy populace has eagerly embraced cryptocurrencies, often using the peer-to-peer trading offered by crypto exchanges to avoid banning, Reuters noted today.

The Securities and Exchange Commission (SEC) of Nigeria has published the “New Rules on Issuance, Offering Platforms and Custody of Digital Assets” in document form on its website.

It sets out the rules for issuing digital assets and classifies them as securities to be regulated by the SEC. It also includes registration requirements for digital asset offerings and custodians, as well as rules for digital asset exchanges.

The regulations could “act as the precursor to a surprise decision by the central bank to reverse its approach, providing critical foundations for mass crypto adoption across the country,” said Owen Odia, country director for the Nigeria to Luno cryptocurrency exchange, to Bloomberg via email.

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