The Securities and Exchange Commission (SEC) has issued a statement on digital assets, their classification and treatment.
The commission in a statement obtained from its website noted that since digital assets offerings provided alternative investment opportunities for the investing public, it is essential to ensure that these offerings operate in a manner that is consistent with investor protection, the interest of the public, market integrity and transparency
It noted that the general objective of regulation is not to hinder technology or stifle innovation, but to create standards that encourage ethical practices that ultimately make for a fair and efficient market.
“Section 13 of the Investment and Securities Act, 2007 confers powers on the commission as the apex regulator of the Nigerian capital market to regulate investments and securities business in Nigeria.
In line with these powers, the SEC has adopted a threepronged objective to regulate innovation, hinged on safety, market deepening and providing solution to problems. This will guide its strategy, its regulations and its interaction with innovators seeking legitimacy and relevance.
“Consequently, SEC will regulate crypto-token or crypto- coin investments when the character of the investments qualifies as securities transactions,” it said.
The statement noted that the position of the commission was that virtual crypto assets are securities, unless proven otherwise