Nigerian SEC publish statement regarding the countries approach to regulation of Cryptocurrency

• The Nigerian securities and exchange commission has just recently published a statement this week on the 14th of September which denied digital assets and coins in the country's financial market. 

• In the statement, the commission mentioned that these cryptocurrencies would be classified into four different categories for oversight in regulation.

The Nigerian securities and exchange commission has just recently published a statement this week on the 14th of September which denied digital assets and coins in the country's financial market. In the statement, the commission mentioned that these cryptocurrencies would be classified into four different categories for oversight in regulation.

Part of the statement said the following:

“Virtual crypto assets are securities, unless proven otherwise. The burden of proving that the crypto assets proposed to be offered are not securities and therefore not under the jurisdiction of the SEC, is placed on the issuer or sponsor of the said assets.”

Regulators in Nigeria will be registering and approving all digital assets from now on and treat them as commodities. The SEC also went on to say that it would not be responsible for overseeing utility token spot trading and transactions for the future. They added that they would treat security tokens as securities and derivatives and investment funds would be looked into as a specified investment.

They continue:

“The general objective of regulation is not to hinder technology or stifle innovation, but to create standards that encourage ethical practices that ultimately make for a fair and efficient market.”

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!