Nigeria’s Securities and Exchange Commission, SEC Nigeria, has authorized the National Association of Securities Dealers(NASD plc)to list cryptocurrencies and other digital assets on its proposed electronic platform. NASD Plc is a licenced Securities Exchange operating Over-The-Counter (OTC) marketplace for unregistered securities.
This development comes barely a month after the Central Bank of Nigeria(CBN) lifted the ban on bank-assisted cryptocurrency transactions, marking the end of its two-year crackdown on cryptocurrency within the country’s banking sector.
According to Eguarekhide Longe, NASD plc Managing Director, the soon-to-be-launched Digital Securities Platform(N-DSP)will open up access to a new wave of young investors and enable the capital market to raise funds through various digital securities offerings.
“Our objective is to empower millions of young crypto investors with access to promising digital assets, ensuring they can confidently purchase in a completely compliant and secure investment environment”, he said.
Recall that in June 2022, NASD announced its partnership with Blockstation to ‘create a fast-track for issuers to tokenise their assets, raise funds, and connect to a global investor pool’ in a tripartite Master Agreement involving NASD, TK Tech Africa and Blockstation
Speaking on the SEC approval, Mr Jai Waterman, the founder and CEO of Blockstation remarked that this new development heralds a new era in the economic development of the country.
“In a nation marked by dynamic economic forces, the confluence of digital assets and traditional financial institutions signals a transformative era for Nigeria’s economic landscape”.
Furthermore, the NASD-Blockstation partnership is poised to serve as the pathway to increased blockchain adoption and financial inclusion, with the NASD aiming to tap into Nigeria’s $20 billion annual diaspora remittance through the N-DSP, which is set to be launched on Blockstation’s platform.
“The integration of cutting-edge technology to address the needs of, and captivate the substantially large youthful population, is set to unlock previously untapped markets. We are confident that this platform will play a pivotal role in propelling Nigeria into a new era of economic growth”, he concluded.