Nigeria will regulate digital assets market to make fair and efficient market, the Securities and Exchange Commission of Nigeria has reported.
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The regulator claims the general objective of regulation "is not to hinder technology or stifle innovation, but to create standards that encourage ethical practices."
Hence, the SEC will regulate cryptocurrency investments when the character of the investments qualifies as securities transactions.
The SEC says it will regulate any person whose activities involve any aspect of blockchain-related and cryptocurrency services.
"Such services include, but are not limited to reception, transmission and execution of orders on behalf of other persons, dealers on own account, portfolio management, investment advice, custodian or nominee services," the watchdog added.
According to the regulatory guidelines, foreign or non-residential issuers or crypto-focused sponsors will have to establish a branch office within Nigeria.
In July 2019, Femi Gbajabiamila, speaker of the Nigerian House of Representatives, urged to develop a legislative framework to regulate cryptocurrencies.
Gbajabiamila asked to regulate digital currencies in order to encourage their development, since, according to him, Nigeria should not be left behind as digital coins are massively adopted, he added.
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