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Nigerian SEC Sets Up a Blockchain and Virtual Financial Assets Working Group

The Nigeria Securities and Exchange Commission (NSEC) has set up a committee to work to help articulate recommendations on developing a regulatory framework blockchain and virtual financial assets framework for the Nigeria Capital Markets.

The Fintech Roadmap Working Group Committee will develop a supportive and regulatory framework for blockchain and virtual financial assets that is aimed at effective investor protection, financial market integrity, and financial stability.

As a result of the above recommendations, the recently instituted blockchain working group will have the following mandate:

  • Develop a framework to support innovation and regulation within the blockchain and virtual financial assets
  • Compare global practices on regulatory taxonomization and classification of crypto
  • Recommend a suitable model
  • Analyze the functional characteristics of digital assets to in form regulation
  • Advise the SEC on approaches and guidelines to regulate financial virtual assets in relation to the capital market
  • Articulate industry expectations regarding regulation of ICOs and STOs
  • Review current AML/CFT and KYC regulations and suggest improvements to cater to the blockchain and virtual financial assets space
  • Propose a cyber-security framework in line with recognized international standards

Officials from various regulatory agencies, the private sector, and tech experts comprise the committee officials whose assignment is expected to be completed by end of November 2019.

Speaking to BitcoinKE, Chimezie Chuta, a member of the committee and board member, Organization of Blockchain Technology Users and founder of Blockchain Nigeria User Group, said:

Chimezie Chuta, – Founder/ Coordinator of Blockchain Nigeria User Group

“A well regulated Blockchain and Virtual Financial Assets industry means a market where players and operators have the required confidence that could boost liquidity. Investors confidence is key to mass adoption. The working group will provide the needed framework that will achieve the aforementioned.

Our argument was that Blockchain and Virtual Financial Assets are new and unique in various ways. It deserves a specific working group.”

Part of the committee mandate is to compare global practices when it comes to taxonomy and classification of cryptocurrencies either as a commodity, security, or currency and recommend a suitable adoption model for the Nigeria Capital Markets.

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