Nigeria Issues Rules Regarding Crypto Assets, A Move That Could Boost Adoption
A new set of regulations has been issued by Nigeria’s Securities and Trading Commission regarding the issuance, exchange, and custody of digital assets in the nation. The Commission’s decision comes 20 months after it first started its position on digital assets and how they should be classified and treated.
The word “digital assets” encompasses all crypto assets. Also, the SEC’s stance is in sharp contrast to that of the Central Bank of Nigeria (CBN), which presently prohibits Nigerian financial institutions from doing business with crypto-related enterprises. Token issuance platforms and exchanges must now establish trust accounts with receiving banks under the new SEC requirements outlined earlier this year.
Nigeria has been a pioneer in the worldwide acceptance of cryptocurrency. This breakthrough has the potential to legitimise crypto and associated industries and offer up new opportunities for their use in Nigeria. A framework for financial institutions in the nation to deal with crypto might be provided by SEC guidelines to the CBN.
If you’re planning on selling any form of cryptocurrency items or services in Nigeria, you’ll need to get a virtual asset service provider licence (VASP). To this, we’ll add licences for appropriate subcategories. VASP permits are not enough to operate as a digital asset exchange, for example.
In exchange for the VASP licence, you must comply with a certain set of conditions. It is necessary for licence holders to collect risk acknowledgement papers from customers and to make it clear that investment losses are not protected by any insurance. They also need to follow anti-money laundering (AML) and anti-terrorist financing (CFT) regulations.