The Nigerian Securities and Exchange Commission (NSEC) recently revealed that it will only include cryptocurrencies in its digital assets agenda when regulators finally agree on the standards to protect investors, noting that crypto is not priority
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The commission added that cryptocurrencies are currently excluded because the exchange platforms where such digital assets are traded are operating outside of the Nigerian banking system.
The commission is avoiding the digital currency as crypto exchanges do not have access to the banking platform that is needed to drive their trades in Nigeria yet, Director-General Lamido Yuguda told reporters in Lagos, the nation’s commercial hub. “We are looking at digital assets that really protect investors,” not necessarily crypto, Yuguda said
In addition to promoting safer digital assets, the commission reportedly said it will explore blockchain’s use in advancing virtual and traditional investment products.
In May, the NSEC unveiled new rules governing the issuing of digital assets as well as the registration requirements for platforms that offer digital assets. At the time, some in the Nigerian crypto community believed the new rules applied to cryptocurrencies. While Yuguda admitted that cryptos are presently excluded, he did not rule out including them in the future.
“Any asset that is traded in the Nigerian capital market requires the joint approach of different regulators,” the director-general reportedly said.