Nigeria has issued new rules regulating the work of digital assets, providing more clarity on cryptocurrency trading in Africa’s most populous country.
The Securities and Exchange Commission has published on its website the “Rules for the Issue, Presentation Platforms, Custodians and Clearinghouses of Digital Assets” in accordance with virtual technologies, and has classified those assets as securities subject to the commission’s supervision and regulation.
The new rules are boosting trading, providing more clarity about the sector in a country that ranks as one of the largest digital asset markets.
Nigeria has the largest cryptocurrency trading volume outside the US, according to Bitcoin exchange Paxful.
The central bank last year directed commercial banks to halt transactions or operations related to cryptocurrency, citing its threat to the financial system. The Securities and Exchange Commission said at the time that it would seek to protect investors and make the market more transparent.
The regulations “could act as a prelude to a sudden move by the central bank in reversing its approach, and provide important foundations for the widespread adoption of cryptocurrencies across country”.
The new rules cover the issuance of digital assets as securities, the registration of platforms, digital asset custodians, exchanges and virtual asset service providers.