In a news release on 14th September 2020, the Nigeria Securities and Exchange Commission (SEC) classified cryptocurrency and/or virtual digital assets as legal having outlined some accompanying regulations. This then brings an end to the many speculations that were surrounding the legality and adoption of cryptocurrency in Nigeria.
Following the invention and emergence of cryptocurrency in 2009, many countries had made their stands known with regards to this money evolution. While some countries adopted and welcomed the technology with open arms, some termed it as illegal and a few outrightly banned its usage on the grounds that cryptocurrency cannot be controlled and/or completely regulated by the government. But the fact that crypto cannot be controlled by the government is what makes it interesting.
Nigeria on the other hand was on a neutral ground as it never termed cryptocurrency legal or illegal and neither was its usage banned. However, the usage of cryptocurrency by Nigerians kept increasing day-by-day and it is believed to increase even more following the fact that it is now classified as legal.
According to the Nigeria SEC, it is necessary to regulate the usage of virtual digital assets in the nation, so as to ensure investor protection, transparency and market integrity as well as encouraging ethical practices. Moving forward, the Nigeria SEC holds that virtual crypto assets are securities, unless proven otherwise. And in line with the powers accorded the Commission, it will regulate cryptocurrency when the character of the investments qualifies as securities transactions.
Interestingly, it was also noted in the release that persons or corporations involved in any crypto and blockchain activities must be registered by the Nigeria SEC and hence, subject to the regulations.
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Posted Using LeoFinance