The SEC cryptocurrency statement: What is SEC regulating?


I learnt about the new ‘Statement On Digital Assets And Their Classification And Treatment’ issued by the Nigerian Securities and Exchange Commission (SEC) yesterday from a friend who wanted to understand what the ‘Statement’ means for his business in the Nigerian cryptocurrency space.

On the face of it, the Statement gives us an insight into SEC’s approach towards regulating the rapidly expanding cryptocurrency space. While the Statement clearly establishes SEC’s intention to introduce regulation in the near future, it leaves some other issues needing clarification.

This piece is my attempt at thinking through the Statement and what it might mean for the future of the Nigerian cryptocurrency regulation framework.

First, we need regulation

We are now past the point where we ask if Nigeria’s cryptocurrency space needs regulation; the issue at this point is how to do it. The need to protect consumers and unsophisticated investors in emerging industries is a key driver for creating framework regulations.

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