"Changingregulations" SEC speaks on monitorig crypto transactions

• The Securities and Exchange Commission (SEC) expressed intentions to monitor crypto transactions in Nigeria
• Expanding the regulatory framework to match modern circumstances is the aim of the amendment
• One of the largest peer-to-peer (P2P) bitcoin marketplaces in the world is located in Nigeria

The weekly and monthly trade statistics of Virtual Assets Service Providers (VASPs), including cryptocurrency automated teller machines (ATMs), exchanges, P2P platforms, custodians, and others is set to be monitored by the Securities and Exchange Commission (SEC).

The SEC is changing its regulations on digital asset issuance, offering platforms. Photo Credit: Filadendron
Source: Getty Images

A Framework on Accelerated Regulatory Incubation Program for the Onboarding of Virtual Assets Service Providers (VASPs) and other Digital Investments Service Providers (DISPs), a recently released document from the SEC, provides specifics on this project.

What is changing?

The SEC is changing its regulations on digital asset issuance, offering platforms, exchanges, and custodies in order to organize the nation's cryptocurrency ecosystem. The goal of the modification is to broaden the regulatory framework to reflect contemporary conditions.

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A dedicated window for onboarding VASPs is part of the arrangement, which is known as the "Accelerated Regulatory Incubation Programme (ARIP)."

In its ARIP, SEC said,

“ARIP participants shall submit to the Commission the following: Weekly and monthly trading statistics (where applicable) and all reporting requirements.“They shall submit quarterly financials as well as compliance reports to demonstrate compliance with conditions imposed by the Commission. Key issues arising from misconduct, fraud, or operational incident reports and, if any, measures taken by the participant to address such incidents.“They shall also submit actions or steps taken to address customer complaints, emergent risks, or other issues relevant to Commission’s assessment of applicable regulatory requirements; and any other relevant matters.”

Nigeria is biggest cryto market

Nigeria is home to one of the world's biggest peer-to-peer (P2P) cryptocurrency markets. Global blockchain platform Chainalysis reports that during July 2022 and June 2023, the amount of cryptocurrency transactions in the nation was $56.7 billion. That comes out to $1.09 billion every week.

Sen. Ihenyen, lead partner and head of Infusion Lawyers' blockchain and virtual assets practice, claims that Nigeria can no longer afford to continue putting digital assets underground for evident security and economic reasons.

He said the industry will benefit from the CBN's acknowledgment of the SEC's regulatory role in the digital asset area.

He said,

“Our regulators will now work together to ensure consumer protection and investor safety,” Ihenyen further said.

An expert in the field compared the evolution to the customs in South Africa.

“They’re basically saying that SEC will now take the lead on VASPs, a far departure from what it was during Godwin Emefiele’s time. This new move was done to meet the Financial Action Task Force (FATF) standard on anti-money laundering and crypto trading fund (AML/CTF) for digital assets, similar to what South Africa did. Execution is what will make the difference. We’ve never been lacking in regulations.”

Wale Edun, the minister of finance and coordinating minister of the economy, assigned the newly established SEC board the duty of handling the intricacies of regulating cryptocurrencies earlier in July.

“The SEC board should be willing to accept the challenge of regulating these new areas, particularly crypto, as they are fast-moving complex areas,” he said.

Presidency speaks on banning binance

Legit.ng reported that Bayo Onanuga, special adviser on information and strategy to President Bola Tinubu, has said if Nigeria fails to clamp down on Binance, the world's leading blockchain ecosystem will destroy the economy of the country.

Onanuga said this in an interview on Channels Television’s 'Politics Today' on Wednesday night, February 28.

The presidential aide accused Binance of ‘just fixing the rate’ and contributing to the current unpalatable economic situation in Nigeria.

Source: Legit.ng