Nigerian Markets Regulator Releases Set of Rules for Digital Assets

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The Nigerian market regulator has published 54 pages of digital asset regulation as the country may be stepping back from a previous ban on cryptocurrencies.

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

Still, Nigeria’s young, tech-savvy population has eagerly adopted cryptocurrencies, often using peer-to-peer trading offered by crypto exchanges to get around the ban, Reuters noted today.

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

It describes rules for issuing digital assets and classifies them as securities that must 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 regulation could be “the precursor to a surprising move by the central bank to reverse its approach, providing a crucial foundation for mass crypto adoption across the country,” said Owen Odia, Nigeria country manager at cryptocurrency exchange. Luno, by e-mail to Bloomberg.

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