The Nigerian Securities and Exchange Commission’s director general, Lamido Yuguda, stated that the regulator has no plans to include cryptocurrencies in its agenda for digital assets. According to Yuguda, the commission won’t modify its position on cryptocurrencies unless Nigerian regulators concur on the guidelines for safeguarding investors in digital assets.
Promotional Commission for “Sensible Digital Assets”
When regulators ultimately agree on the rules to protect investors, the Nigerian Securities and Exchange Commission (NSEC) stated it will include cryptocurrencies in its digital assets agenda. Since the exchange platforms where these digital assets are transacted operate outside of Nigeria’s banking system, cryptocurrencies are now excluded, the commission continued.
The NSEC is eager to promote what the organization’s director general, Lamido Yuguda, refers to as “smart digital assets,” according to a Bloomberg story. Yuguda clarified:
The commission does not engage in speculation; rather, it protects investors.
The commission allegedly stated that it will investigate using blockchain to advance both virtual and conventional investment goods in addition to encouraging safer digital assets.
New regulations governing the issuance of digital assets as well as the registration requirements for platforms that offer digital assets were unveiled by the NSEC in May. Some members of the Nigerian cryptocurrency scene at the time thought the new regulations extended to cryptocurrencies. Cryptos are currently not included, however Yuguda acknowledged that this may change in the future.
The director-general allegedly added, “Any asset that is traded in the Nigerian capital market requires the coordinated approach of different regulators.”