Cryptocurrencies in Nigeria are classified as securities, decided the Nigerian Securities and Exchange Commission (SEC) on Monday. The SEC chose the designation as “securities” for crypto-assets. This means the cryptocurrencies will be regulated by the laws for other securities on the capital market. The decision is derived from the Investment and Securities Act, 2007.
The legal status of cryptocurrency in Nigeria was a kind of deal – no deal. This issue has been highlighted as extremely important in the eye of the public attention in Nigeria. The absence of regulations caused many problems for crypto traders. It happened very often that some badly informed fin-tech companies illegally confiscate the funds from the traders that are traded bitcoin or some other cryptos in Nigeria. These traders were users of their platforms, they traded cryptos on peer-to-peer exchanges. The most popular cryptocurrency is bitcoin but the interest in other cryptocurrencies in Nigeria is on the rise.
Deal or no deal, cryptocurrencies in Nigeria are legal
Prior to this last SEC’s classification of cryptocurrencies in Nigeria, the situation was very complex and often with complications. Trading cryptocurrencies in Nigeria, for example, bitcoin, wasn’t illegal but it wasn’t fully regulated. Traders were unprotected and very often they were victims of fraudulent exchanges and platforms. The subject of discussion: is crypto trading legit or not, is removed by the law now. Cryptocurrencies are legit in Nigeria and also the crypto trading. Traders will be able to trade cryptos as other securities.
How to trade securities in Nigeria
Before you start trading securities, you’ll need to open a brokerage account with the approved brokerages in Nigeria. After application, you have to provide identification documents, a bank account with BVN, signatures of account holder(s), passport screenshots or photos, etc. The applicant will have a brokerage account active in less than 48 hours. Some brokerages have platforms for online trading, which is convenient for some customers.
The SEC’s new regulation makes things easier for trading cryptocurrencies in Nigeria. Cryptocurrencies as digital money are legal in Nigeria. We’ll see how it will influence the interest of Nigerian people to trade them. The response of Nigerian regulators to the rise of cryptocurrencies is clearly positive, they now have the status of securities.
The Central Bank of Nigeria (CBN) does recognize cryptocurrencies, thus will have a regulatory framework or licensing regime for cryptocurrency operators, Nigerian traders believe.