The new law expands the powers of the securities and exchange of Nigeria (SEC), which controls the country’s financial market. Now cryptocurrency exchanges and virtual assets services (VASP) will be required to register in the SEC – this department will officially regulate companies working with cryptocurrencies.
The chairman of the Nigerian SEC Emomotimi Agama said that the law serves the protection of investors from fraud and system risks. Agama believes that thanks to the new law, Nigeria will be able to attract more local and foreign investments. In addition, the law should strengthen the confidence of society in blockchain technology and cryptocurrencies.
The law provides for strict punishments for creating cryptocurrency pyramids. Violators can receive a prison term for more than 10 years and a minimum fine of 10 million Nigerian Nyr (about $ 6500). Depending on the seriousness of the offense, the total amount of fines can be up to 40 million Nigerian Nyr (about $ 26,000).
Last year, SEC Nigeria warned about the Marino FX cryptocurrency exchange, which claims to have a license for work in the country. Earlier, the Nigerian authorities threatened the prosecution of cryptocurrencies if they do not comply with the rules for combating money laundering (Aml) and the financing of terrorism.
Source: Bits
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