Nigerian Security and Exchange Commision (SEC) is actively working to distinguish between cryptocurrencies and Digital Assets. As the Nigerian SEC is not planning to include cryptocurrencies in a plan for improving trading in digital assets until regulators agree on standards that protect the fellow investors.
It can be said that Nigeria SEC will avoid cryptocurrencies, and now will only focus on the digital assets that will protect the investors. Moreover, the Nigerian SEC will develop trade in 50 digital assets by 2025.
It can be seen as the Commision is now avoiding the digital currency as the crypto exchanges do not own the access to the banking platform that is required to make a trades in the Country in West Africa, yet.
The Head-Talk
In Lagos, the Director-General, Lamido Yuguda said “We are looking at digital assets that really protect investors,” not necessarily crypto.”
The Director-General of the Nigerian Securities and Exchange Commission (SEC), joins other regulators including those in South Korea seeking to be more clear about the distinction between digital assets and virtual or cryptocurrencies.
As reported by Bloomberg, Mr. Yuguda said the country will upgrade investment in “sensible digital assets” with investment protection — without offering specifics. The SEC will also explore blockchain technology to advance virtual and traditional investment products. The commission is avoiding digital currencies for now.
However, it can be noted that the cryptocurrencies are not completely banned in Nigeria, although the Central Bank of Nigeria has already instructed banks to not engage in or with entities involved with cryptocurrencies and to close the accounts of those involved in crypto transactions.
Nigerians are among the most prolific crypto users, and also seems most curious about the cryptocurrencies. Despite this, the IMF wants crypto regulation in Africa to be stronger and better. The widespread use of crypto could weaken monetary policy effectiveness and threaten macroeconomic stability.
The Country has been at the lead of Central Bank Digital Currency (CBDC,) innovation as it became the first African nation that launched its own CBDC, the eNaira, in October 2021. And after one year, the eNaira has been used to carry out transactions with 4 Billion Naira ($9.3 Million.)
How Regulators are Defining ‘Digital Asset?’
Not only the Nigerian regulator, but Singaporean, Hong Kong and South Korean market regulators also joined in trying to define what assets fall under the term “digital asset.”
The Monetary Authority of Singapore, mentioned a digital asset is “anything of value whose ownership is represented in a digital or computerized form,” and it is referred to as crypto assets when deployed on the blockchain.
The Hong Kong Securities and Futures Commission (SFC) uses “virtual assets” to cover digital representations of value, it may be in the form of digital tokens, virtual commodities, crypto assets or other assets of essentially the same nature.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/11/28/have-you-heard-about-this-new-step-by-nigerian-sec-in-crypto-space/