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I put these words together circa fortnight ago to help give a laser clarity assistance on the different regulatory roads to travel by @SECNigeria & @cenbank per their enabling statute-laws on crypto-assets.

#Cryptoreg #legaltender #bitcoin #blockchainsecurities
*Cryptocurrencies: SEC Nigeria Has No Power to Regulate Only the CBN Does*
For the purposes of issuance and regulation, cryptocurrencies do not fall within the regulatory remit of a national securities regulator like for instance the Securities and Exchange Commission (SEC) Nigeria.

#Cryptoassets @cenbank @SECNigeria #legaltender #cryptosecurities
Issuance and regulation of cryptocurrencies fall by necessary implication within the remit of the CBN, though it must be noted that cryptocurrencies are a veritable example of private currency operations.

#Bitcoin #Cryptoreg @cenbank #nonlegaltender #Cryptoassets
CBN

The Central Bank of Nigeria (CBN) has the exclusive remit to issue and regulate one legal tender currency in Nigeria known as the Nigerian Naira (NGN). Cryptocurrencies not issued and regulated by the CBN are private cryptocurrencies.

@cenbank #legaltender #cryptoassets
There is no public cryptocurrency in Nigeria at the moment, as the CBN has not declared any interest of the government in coming up with public cryptocurrency/cryptocurrencies as the case may be.

#Cryptoassets #Cryptoreg
It is noteworthy that a great number of central banks all around the world are working on their own Central Bank Digital Currency (CBDC) projects, and notable among these is the People’s Bank China (PBoC), whose...
blockchain-based sovereign fiat crypto-asset is due out in this Q4, 2019. Section 3 of the Central Bank of Nigeria (CBN) Act, 2007 provides that:
"2. The principal objects of the Bank shall be to – (a) ensure monetary and price stability;
(b) issue legal tender currency in Nigeria;
(c) maintain external reserves to safeguard the international value of the legal tender currency; (d) promote a sound financial system...
in Nigeria; and
(e) Act as banker and provide economic and financial advice to the Federal Government.”.
SEC

The SEC is the ultimate national securities regulator for cryptosecurities, cryptocommodities, and cryptoderivatives which are products financialised and built on cryptocurrencies as the nascent monetary system foundation.
Unlike some other climes like the United States, where cryptosecurities and cryptocommodities are regulated by different government regulatory bodies, and cryptocurrencies its central banking authority known as the Federal Reserve System.

#legaltender #nonlegaltender #bitcoin
The SEC Nigeria power to regulate all crypto-assets except for cryptocurrencies as usual, has a statutory imprimatur. As earlier stated, the regulatory remit and jurisdiction over cryptocurrencies otherwise known as cryptoutilities lie with the central banking authority.
Unlike some other climes like the United States, where cryptosecurities and cryptocommodities are regulated by different government regulatory bodies, and cryptocurrencies its central banking authority known as the Federal Reserve System.
Section 13 of the Investment and Securities Act 2007 provides:

"13 The Commission shall be the apex regulatory organisation for the Nigerian capital market and shall carry out the functions and exercise all the powers prescribed in this Act and, in particular, shall-
(a) regulate investments and securities business in Nigeria as defined in this Act;

(b) register and regulate securities exchanges, capital trade points , futures, options and derivatives exchanges, commodity exchanges and any other recognised investment exchange;
(c) regulate all offers of securities by public companies and entities;
(d) register securities of public companies;
(e) render assistance as may be deemed necessary to promoters and investors wishing to establish securities exchanges and capital trade points;
(f) prepare adequate guidelines and organise training programmes and disseminate information necessary for the establishment of securities exchanges and capital trade points;
(g) register and regulate corporate and individual capital market operators as defined in this Act;
(h) register and regulate the workings of venture capital funds and collective investments schemes in whatever form;
(i) facilitate the establishment of a nationwide system for securities trading in the Nigerian capital market in order to protect investors and maintain fair and orderly markets;
(j) facilitate the linking of all markets in securities with information and communication technology facilities;
(k) act in the public interest having regard to the protection of investors and the maintenance of fair and orderly markets and to this end establish a nationwide trust scheme to compensate investors whose losses are not covered under the investors protection funds...
administered by securities exchanges and capital trade points;
administered by securities exchanges and capital trade points;
(l) keep and maintain a register of foreign portfolio investments;
(m) register and regulate securities depository companies, clearing and settlement companies, custodians of assets and securities, credit rating agencies and such other agencies and intermediaries;
(m) register and regulate securities depository companies, clearing and settlement companies, custodians of assets and securities, credit rating agencies and such other agencies and intermediaries;
(n) protect the integrity of the securities market against all forms of abuses including insider dealing;
(o) promote and register self regulatory organisations including securities exchanges, capital trade points and capital market trade associations to which it may delegate its powers;
(p) review, approve and regulate mergers, acquisitions, takeovers and all forms of business combinations and affected transactions of all companies as defined in this Act;
(p) review, approve and regulate mergers, acquisitions, takeovers and all forms of business combinations and affected transactions of all companies as defined in this Act;
(q) authorise and regulate cross-border securities transactions;
(r) call for information from and inspect, conduct inquiries and audit of securities exchanges, capital market operators, collective investment schemes and all other regulated entities;
(s) promote investors' education and the training of all categories of intermediaries in the securities industry;
(t) call for, or furnish to any person, such information as may be considered necessary by it for the efficient discharge of its functions;
(u) levy fees, penalties and administrative costs of proceedings or other charges on any person in relation to investments and securities business in Nigeria in accordance with the provisions of this Act;
(v) intervene in the management and control of capital market operators which it considers has failed, is failing or in crisis including entering into the premises and doing whatsoever the Commission deems necessary for the protection of investors;
(w) enter and seal up the premises of persons illegally carrying on capital market operations;
(x) in furtherance of its role of protecting the integrity of the securities market, seek judicial order to freeze the assets (including bank accounts) of any person whose assets were derived from the violation of this Act, or any securities law or regulation in Nigeria or...
(y) relate effectively with domestic and foreign regulators and supervisors of other financial institutions including entering into co-operative agreement on matters of common interest;
(z) conduct research into all or any aspect of the securities industry;
(aa) prevent fraudulent and unfair trade practices relating to the securities industry;
(bb) disqualify persons considered unfit from being employed in any arm of the securities industry;
(cc) advise the Minister on all matters relating to the securities industry; and
(dd) perform such other functions and exercise such other powers not inconsistent with this Act as are necessary or expedient for giving full effect to the provisions of this Act.”.
(t) call for, or furnish to any person, such information as may be considered necessary by it for the efficient discharge of its functions;
This above provision underscores, and extensively puts out in bold relief the extent and implications of the powers of the national securities regulator in Nigeria to regulate securities and investment business, and by necessary implication and extension cryptosecurities,
cryptocommodities, and cryptoderivatives and their Crypto-Asset Trading Platforms (CTPs), but not cryptocurrency platforms that trade cryptocurrencies, or Utility Token Platforms (UTPs) that trade cryptoutilities alone same as cryptocurrency exchanges, but with a difference...
cryptocommodities, and cryptoderivatives and their Crypto-Asset Trading Platforms (CTPs), but not cryptocurrency platforms that trade cryptocurrencies, or Utility Token Platforms (UTPs) that trade cryptoutilities alone same as cryptocurrency exchanges, but with a difference...
that lies in the consumer or speculative status of the utility token.
Conclusion
Sections 3 and 13 of the statute-laws Central Bank of Nigeria (CBN), 2007 and Investment and Securities Act, 2007 have clearly spelled out the individual powers to regulate and what to regulate respectively by each agency concerned.
and gravitas to regulate what, how and when.
In the question of regulation of blockchain/DLT - based cryptocurrencies and the financialised derivatives such as cryptosecurities and cryptocommodities, there should be no controversy or confusion whatsoever, howsoever and whenever on which of these has the podestas...
Disclaimer
Not an investment advice. This is for general information purpose only. Consult a financial advisor or a legal counsel.
Boulevard A. Aladetoyinbo, Esq.,
Head, Crypto Capital Formation Practice, Lex Futurus Group.
Follow me on Twitter: BoulevardLP
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