Nigeria is leading the way in regulating digital assets in Africa and is one of the countries working hard to govern the digital asset space, according to the country’s securities regulator executive director said. The director also shed light on the different regulatory roles played by the Central Bank and the Securities and Exchange Commission of Nigeria (SEC).
Investor Protection
According to Dayo Obisan, executive director of Nigeria’s securities regulator, the country is “leading Africa in rulemaking and regulation of the digital asset space.” Globally, Obisan claims, Nigeria is one of the countries working diligently in this area.
In a comment published by Nairametrics, Obisan said that the objective of his organization, the Nigerian Securities and Exchange Commission (SEC), is to create an operating environment where players in the digital asset space can prosper and protect investors He stated.
Obisan’s remarks on the SEC’s regulation of digital assets come just over two months after his organization announced a new set of rules to govern the use of cryptocurrencies as well as the activities of virtual asset service providers (VASPs).Bitcoin.com As reported by News, the new rules govern the issuance of digital assets as securities. They also include rules regarding registration requirements for digital asset offering platforms (DAOPs), VASPs, and digital asset exchanges.
The SEC Commissioner’s comments come amid lingering questions about which agency, the SEC or the Central Bank of Nigeria (CBN), should regulate cryptocurrencies. Some players in Nigeria’s digital assets sector say the seemingly contradictory statements issued by the two regulators suggest that the two do not see eye to eye when it comes to the regulation of digital assets.
Digital Assets as an Investment Tool
However, speaking at a webinar hosted by Nairametrics, Obisan attempted to address this confusion by clarifying the role of each regulator. He stated.
The regulatory world is evolving. Even after we came up with the classification of digital assets . As you know there is this fungible use of the terms crypto asset and cryptocurrency. Fiat, or fiat money, is money and is the medium of exchange exclusively employed by the Central Bank of Nigeria. But when it is used as an investment tool, it falls honestly into our lap.
After the SEC released its latest set of rules governing the digital asset space, Bitcoin.com News sought CBN Governor Godwin Emefiele’s reaction. However, as of this writing, Emefiele has not responded to our inquiry.
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