The Securities and Exchange Commission has revealed plans to issue updated guidelines for the operations of digital assets and virtual assets service providers in the country.
In an update from the SEC obtained by The PUNCH on Wednesday, the commission said that the new guidelines will ensure criminals do not gain entry into the country’s capital market.
On Tuesday, crypto exchange, Binance announced that it was ceasing naira services on its platform following clashes with the Federal Government, which had accused the platform of manipulating the value of the naira through speculative activities on its platform.
The SEC notice, dated March 4, partly read, “The SEC has also developed new AML/CFT/CPF AML/CFT/CPF onboarding manual for licensing/registration and on-going screening of Digital and VASP Beneficial Owners to ensure that criminals are not registered as operators in the capital market.
The SEC is ready to interface with genuine VASPs based on these clear rules and regulations.”
SEC also said that following engagement with the Central Bank of Nigeria, updates were being made to its rules.
“That will soon be exposed to the market for comment before final approval. For ease of reference relevant Rules and Regulations issued by SEC on the regulation of Digital Assets and VASPs have been collated for use by potential applicants and the public,” it stated.
CBN lifted the ban on crypto transactions in the country in December 2023, and issued operational guidelines on virtual assets service providers to all banks and other financial institutions.
In September 2020, the commission released its treatment and classification of digital assets, where it specified its regulatory purview over crypto tokens traded on a recognised exchange, utility tokens traded on a recognised exchange, security tokens that have features of securities and funds and derivatives of those three types of tokens.
In May 2022, the SEC issued regulations on general requirements for virtual assets service providers, issuance of digital assets as securities; digital assets offering platforms, digital assets exchange and digital asset custodians.
In May 2022 and April 2023, the commission amended anti-laundering regulations.
In April 2023, procedures for implementing targeted financial sanctions on terrorist individuals and entities were also issued.
All of these measures were geared towards sanitising the digital assets space in the country.
