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What the move to regulate Nigeria’s digital assets space means for investors
Nigeria's major capital market regulator has put out guidelines on how the investing community in Nigeria should classify cryptocurrencies and digital assets. The Securities and Exchange Commission also gave a three-month ultimatum for already existing digital assets to register their offerings. Chuta Chimezie, Founder and Coordinator, Blockchain User Group and Sam Chidoka, MD and CEO of Kairos Capital joins CNBC Africa’s Christy Cole for this discussion.
Wed, 16 Sep 2020 10:13:28 GMT
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AI Generated Summary
- The SEC in Nigeria has released guidelines for classifying cryptocurrencies and digital assets, signaling a new era of regulatory oversight in the country's digital assets space.
- The collaborative effort between the SEC and the crypto community aims to provide clarity and legitimacy to the industry, boosting confidence and fostering innovation.
- Concerns about over-regulation have been raised, highlighting the need for clear communication and stakeholder input to balance market standards and growth.
Nigeria's Securities and Exchange Commission (SEC) has recently issued guidelines on how the investing community in Nigeria should classify cryptocurrencies and digital assets. The SEC has also given a three-month ultimatum for existing digital assets to register their offerings. The move marks a significant development in the regulation of the digital assets space in Nigeria and has sparked discussions within the crypto community. Chuta Chimezie, Founder and Coordinator of the Blockchain User Group, and Sam Chidoka, MD and CEO of Kairos Capital, joined CNBC Africa's Christy Cole to discuss the implications of these new regulations. The conversation shed light on the potential impacts on investors and the broader cryptocurrency ecosystem in Nigeria. Chimezie welcomed the regulatory guidelines, emphasizing that they provide clarity and legitimacy to the industry. He highlighted the collaborative effort between the SEC and the cryptocurrency community in drafting the guidelines, which he believes will boost confidence and encourage innovation in the sector. However, concerns were raised about the possibility of over-regulation stifling growth and limiting investment opportunities. Chimezie acknowledged the importance of standard rules in the market but also emphasized the need for clear communication and input from stakeholders to avoid overbearing regulations. Amidst the uncertainties, Cole inquired about the safety and confidence of investors in cryptocurrencies, given the asset class's inherent volatility and lack of institutional support. Chimezie stressed the need for investors to seek proper knowledge and guidance before diving into the crypto market. He urged individuals and organizations to understand the unique risks and opportunities associated with crypto assets and to engage with experienced market participants for insights. He also highlighted the importance of custodial services and investor protections to instill confidence in the market. Chidoka echoed the sentiments, emphasizing the role of custodial services in ensuring the security of investors' funds and maintaining market integrity. Overall, the discussion underscored the evolving regulatory landscape of digital assets in Nigeria and the challenges and opportunities it presents to investors and industry participants. As the SEC continues to refine its regulatory framework, stakeholders will need to collaborate and engage constructively to foster a conducive environment for innovation and investment in the crypto space.
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