The government of Nigeria plans to regulate digital currencies and crypto-based companies, media reports said. Previously, the government had banned the use of digital currencies.
Nigeria’s Securities and Exchange Commission (SEC), told the media, “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. Digital assets provide alternative investment opportunities for the investing public and it therefore becomes essential to ensure that they “operate in a manner that is consistent with investor protection, the interest of the public, market integrity and transparency.”
The country’s present digital currency scenario is volatile due to earlier restrictions against it. Many people are showing interest towards the digital offerings after the government announced the regulation of cryptocurrency.
Nigeria is ranked high among other countries where cryptocurrency adoption was quite significant, according to reports produced by blockchain data analytics firm Chainalysis. The country is ranked in line with top cryptocurrency nations such as Russia, China, South Africa, Kenya, the US and Ukraine.
According to the SEC, any person or entity involved with any Blockchain-related and virtual digital asset services, must be registered with the commission, subject to regulatory guidelines.
It is reported that the SEC sees cryptocurrency as a digital representation of value that can be digitally traded and functions such as a medium of exchange, or a store of value, but it does not have legal tender status in any jurisdiction.