SEC Publishes Rules on Cryptocurrency, Exchange to Register with N30m

SEC Publishes Rules on Cryptocurrency, Exchange to Register with N30m

The Securities and Exchange Commission (SEC) has published rules on cryptocurrency for the Nigerian market, detailing rules and requirements for traders and the authority is asking for N30 million to operate as an exchange.

The set of regulations published for digital assets is an attempt to find a middle ground between an outright ban on crypto-assets and their unregulated use.

Last year, the Central Bank of Nigeria (CBN) banned banks and financial institutions from dealing in or facilitating transactions in digital currencies.

Despite the ban, cryptocurrency trading continues to thrive. Consequent to this, tech-savvy Nigerians adopted cryptocurrencies, for example using peer-to-peer trading offered by crypto exchanges to avoid the financial sector ban.

SEC released “New Rules on Issuance, Offering Platforms and Custody of Digital Assets” on its website, containing a 54-page document that lays out registration requirements for digital assets offerings and custodians, and

The SEC said no digital assets exchange would be allowed to facilitate the trading of assets unless it had received a “no objection” ruling from the commission.

A digital assets exchange will be required to pay N30 million ($72,289) as a registration fee, among other fees. In October, Nigeria launched a digital currency, the eNaira, in the hope of expanding access to banking. Official digital currencies, unlike cryptocurrencies such as bitcoin, are backed and controlled by the central bank.