Nigeria’s financial regulator to regulate cryptocurrencies

The Nigerian Securities and Exchange Commission (SEC) has established a dedicated division focused on researching digital assets and developing a regulatory framework for their oversight. Reuters reports this.

“We are interested in creating rules that will help investors protect their investments in cryptocurrencies,” said Lamido Yuguda, head of the Commission.

According to the official, the rules will attain legal status after approval by the country’s central bank. Yuguda did not specify timelines, adding that the SEC is in dialogue with the monetary regulator.

On February 5, the Central Bank banned credit institutions from providing services to cryptocurrency exchanges and companies dealing with digital assets. Later, the central bank explained that the restrictions do not apply to individuals.

In August, The Guardian reported on the growing popularity of cryptocurrencies in Nigeria, despite government restrictions.

Earlier, the Central Bank of Nigeria announced the launch of a pilot project for the digital naira.

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