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Nigeria's SEC will treat all crypto assets as securities

Nigeria’s SEC will treat all crypto assets as securities

The securities and exchange Commission of Nigeria (SEC) will consider all existing types of cryptocurrencies and tokens as securities.

The regulator explained that cryptocurrencies offer the public alternative investment opportunities. Digital assets can be used as a means of exchange, settlement, and savings, but they are not a legal means of payment in any jurisdiction. Therefore, in order to protect investors from risks and not violate the integrity of the market, crypto assets should be controlled on a par with securities. The Commission added that the main task of regulation is not to prevent the development of new technologies, but to ensure fair market competition and compliance with ethical standards.

The SEC required that all startups working in the field of blockchain and cryptocurrencies, as well as firms that organize initial token offerings (ICO) and token-share placements (STO), be registered within three months. If the Issuer of cryptocurrencies believes that its asset is not a security, it must send the appropriate request to the regulator for an initial assessment.

In 2019, an order on the regulation of cryptocurrencies as securities came into force in Malaysia, according to which all ICOS conducted in the country must be carried out in accordance with securities laws. Last fall, a bill defining stablecoins as securities was also submitted to the US Congress. This bill was drawn up in response to the possible launch of the Libra stablecoin.

In addition, the founder of the Indian research center BEGIN India, Deepak Kapoor (Deepak Kapoor) he said that bitcoin should not be legalized as a cryptocurrency — it should have the status of a security and be traded on the stock market.