Nigeria welcomes ‘crypto asset rules’ A plan can impress you

A country appears unaffected as many individuals and institutions have recently lost faith in cryptocurrencies. Despite an impressive few days in the cryptocurrency market, the Nigerian Securities and Exchange Commission (SEC) has issued rules regarding the issuance, exchange and storage of digital assets in the country. As Nigeria is already one of the leaders in cryptocurrency adoption, it has big plans to advance the crypto industry in the future.

it’s finally happening

Nigeria’s SEC has finally published rules related to regulating the crypto industry. These rules are in place despite restrictions by the Central Bank of Nigeria (CBN). Interestingly, SEC rules may also encourage central banks to issue frameworks that allow cryptocurrency integration with the country’s financial institutions.

Are you following the rules or are you stupid?

Institutions wishing to provide cryptographic products and services must obtain a Virtual Asset Service Provider (VASP) license. A license is an add-on to an existing license for a related service. The VASP license also includes an obligation for the owner to obtain a self-declared risk approval form. You must also issue a disclaimer stating that your investment losses will not be covered by the protection fund. It should also relate to anti-money laundering and anti-terrorism financing.

Any institution providing exchange services in Nigeria must be licensed. This allows the SEC to access records as it is required to file weekly and monthly transaction information. Asset trading is permitted for assets after certification by the SEC. The exchange will also conduct real-time market monitoring.

Initial Coin Offering (ICO) in Nigeria requires registration of intent with the SEC and can only proceed after confirmation. The SEC may also decide to allow the project to raise up to NGN 10 billion ($24.1 million) and update it later. DAOP (Digital Asset Offering Platform) represents a portal through which issuers can start offering assets such as ICOs. DAOP is obligated to provide investors with up-to-date information on listed projects.

However, there are no exact rules on how exchanges should store user assets. Regulators only need to separate the client’s assets from their own to the custodian.

Dorsey and his 2 cents on the future of BTC

The regulation comes after the recent cryptocurrency crash that took away about $1 trillion from the cryptocurrency industry. Twitter co-founder Jack Dorsey tweeted his optimistic outlook for Bitcoin.

In his comments on tokens, Dorsey doesn’t think Bitcoin will ever lose. He is particularly bullish on Bitcoin as global adoption approaches.

Leave a Comment