Nigeria Allocates ‘Security’ status to Crypto-Assets
By Max Steadman – Cryptocurrency Speculator
Nigeria's Securities and Exchange Commission (SEC) has listed crypto-assets as securities, as authorities intensify their efforts to regulate digital assets and cryptocurrency trading in Africa. The SEC notes that the regulation of crypto-assets is compliant with the country's 2007 investment and securities laws.
The Nigerian SEC released an official statement on Monday (September 14th) that the commission is addressing regulation of the crypto-industry. The SEC also claimed that the proposed regulation aims to encourage crypto buying, market openness and to not impede the emerging technology.
According to the commission, issuers of crypto-assets will need to comply with regulation through an initial assessment. The parties involved will have to report the crypto with the commission if the SEC is not satisfied.
Furthermore, international start-ups that want to operate in Nigeria will have to develop a local base in the region. The Nigeria Securities Regulator issued a tentative statement on the possible nature of its regulatory cryptocurrency operations, asserting that "Any person, (individual or corporate) whose activities involve any aspect of Blockchain-related and virtual digital asset services, must be registered by the Commission and as such, will be subject to the regulatory guidelines.”
In a response to the announcement, Senator Iyere Ihenyen, General Secretary of the Nigeria Technology Association (SIBAN), stakeholders in Blockchain, addressed the positive advancement but continued to raise reservations. He explained that he commends the Government for looking at ‘digital assets as alternative investment opportunities’ but conversely, highlighted what he sees as potentially ‘problematic’. The classification of what constitutes a security or investment is his main worry, stating that ‘the burden of demonstrating otherwise is put on the issuer, which could easily be exploited by regulators and even law enforcement agencies.
He goes on to say that the SEC should have implemented a transparent test for establishing these definitions to ‘save us all a lot time, energy and resources.’
Dear valued BC Bitcoin UK Clients,
I hope this email finds you well. We are reaching out to inform you of some significant changes to our services that directly impact our operations within the United Kingdom. Regrettably, due to the recent regulatory developments introduced by the Financial Conduct Authority (FCA) and the implementation of the new Financial Promotions Regime, BC Bitcoin is no longer able to offer our services to clients based in the UK. This very difficult decision is in compliance with the regulatory framework and ensures that we uphold the highest standards of transparency and legality. You can view the FCA publication here: https://www.fca.org.uk/publication/finalised-guidance/fg23-3.pdf As a result, we would like to inform you of the following changes and provide guidance on how to manage your assets with BC Bitcoin:
1. **Service Termination for UK Clients:**BC Bitcoin will no longer be able to accept new purchase orders from clients residing in the United Kingdom.
2. **Continued Operation Outside the UK:**Despite the changes within the UK, BC Bitcoin will continue to operate outside of the UK as normal. Our services will remain unaffected for clients in other regions.
3. **Withdrawal of Assets:**For our UK clients holding assets with BC Bitcoin, we want to assure you that your assets are secure. You have the option to safely withdraw your assets or exchange them to GBP or EUR and subsequently withdraw. We have streamlined the withdrawal process to ensure convenience for our clients.
4. **Conversion of Assets:**To convert your Holdings to fiat please log in to your BC Bitcoin account and submit a sell order for the amount of coin you hold with us. During the process you will shown how much you will receive and asked the bank details you wish to receive payment to. In addition, you can request the conversion by emailing firstname.lastname@example.org from your registered email address. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process.
5. **Withdrawal Procedure:**To initiate a withdrawal, please email your request to email@example.com from your registered email address. You may be asked some security questions to verify your identity. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process. These changes are effective immediately, and we appreciate your understanding and cooperation during this transitional period. We understand that this may be an inconvenience for our UK clients, and we sincerely apologise for any disruption this may cause. Thank you for being a valued part of the BC Bitcoin community. We are committed to providing you with a seamless experience as we navigate through these regulatory changes. If you have any questions or concerns, please do not hesitate to reach out to our customer support team at firstname.lastname@example.org Kind Regards