Every Weekday, Zikoko’s Citizen will explain the biggest issues in Nigeria’s politics and policies, especially as it affects you – the Citizen.
1. So, the Securities and Exchange Commission (SEC) has a new regulation.
The SEC, in a statement on its website yesterday, stated that it will regulate crypto-token or crypto-coin investments when these investments qualify as ‘securities transactions’.
2. Chile, what does this mean?
A ‘Securities transactions’ occurs whenever there has been a sale or purchase of securities. Securities are anything you do business with (to secure the transaction) e.g cash, shares, bonds, etc.
3. How does this affect your bitcoin?
What the SEC is saying is that whenever bitcoin, or ethereum, or any other cyptocurrency is used to do business, they can and will regulate it.
So if you want to raise funds or pay for anything using bitcoin, the SEC says it will now regulate that “securities transactions”.
4. How Will This Will Work?
Everyone who trades in bitcoin (“issuers and sponsors”) will now have to prove that their digital asset (or cryptocurrency) does not constitute securities.
They will have to prove so through an “initial assessment filing“. However, where it shows that their virtual assets are securities, then they must register the asset.
5. Is this a good thing or a bad thing?
Well, from how I see it, this is a good thing. The SEC, at least, recognises digital assets and cryptocurrencies as an acceptable means of transaction, which the CBN still doesn’t.
Regulations like this also give investors the confidence to invest and do more in the digital asset market, which can be very prone to fraud.
So yes, relax.
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