The committee implementing Fintech Roadmap from SEC Nigeria was officially inaugurated.
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We can recall that the security exchange commission (SEC) accepted the fintech roadmap report submitted by the fintech association of Nigeria last year 2019.
The report provided a detailed clarifications on crypto and virtual assets regulation and operations guidance.
Speaking on the eventual inauguration of the Fintech Roads report covering cryptocurrency and other financial services, Dr Segun—chairman fintech association of Nigeria said;
“We are assured that very soon we will be able to have more clarity, we will be able to have more purposeful regulations and guidance in terms of how we will be able to use blockchain particularly cryptocurrency in a way that will protect the common man because what the regulation is, is all about protecting the common man.”
This new development means that the security exchange commission of Nigeria will now take over the regulations of cryptocurrencies as was recommended in the report as follows;
Crypto-Currencies, Virtual Financial Assets (VFA) and ICOS:
- SEC classifies crypto-currencies as Commodities and Securities.
- SEC will be regulating Virtual Financial Assets Exchanges and develop a framework for it.
- Equity-based crowdfunding would be regulated by the SEC (ICO, STO or IPOs).
- SEC will issue guidelines and standards for White Papers and ICOs.
- Develop appropriate licensing regimes for new entrants into the crowdfunding ecosystem by SEC.
- Develop a detailed framework for VFA based economy.
- Provide Anti-Money Laundering (AML) and Know Your Customer (KYC) Procedures..
This new regulations will drive growth for fintech startups under blockchain technology enabling them to operate under a favourable environment.
Moreso, the Growth Board department of the SEC Nigeria will help startups to raise funds easily without going through stringent regulations in Nigeria.