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Industry Stakeholders React to SEC’s Statement on Cryptocurrency, Calls it a Welcome Development

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SEC’s Regulation is a welcome development
The regulations will also help to fine-tune the values that we as service providers create

It further solidifies that effort, and  will act as a catalyst to mass adoption.
It will also go ahead to create the much needed institutional investor confidence for the Nigeria Capital Market.

The Securities and Exchange Commission of Nigeria recently made its position known on digital assets. According to the capital market regulator, virtual digital assets are securities unless proven otherwise and the cost of proof is on the issuer or sponsor of such digital asset. 

The body went on defining what virtual assets are saying they SEC “a digital representation of value that can be digitally traded and function as (1) a medium of exchange; and /or (2) a unit of account; and/or (3) a store of value, but does not have a legal tender status in any jurisdiction.”

Stakeholders in the industry expressed their positions on the move by the capital market regulator. Tech Lawyer and Blockchain researcher Faith Obafemi affirmed the move to be a positive one. In her words,

“In some ways, it is. According to her, the move will curb exit scams through token offerings but SEC seems to want to control any service related crypto. However, this is just a guideline as we await to see how it is implemented.”

Faith Obafemi

CEO of Bitfxt Technologies, Franklin Peters was also in affirmation just like Faith Obafemi and that the move has been long expected by the key players in the industry. According to him, the regulation

“will not only give a new perspective to the end users about cryptocurrency businesses but it will also help to fine-tune the values that we as service providers create. I look forward to seeing subsequent clearer updates from SEC on this subject matter”

franklin Peters, CEO bitfxt technologies

Founder of BeepMagnet, Dr. Gilead Okolonkwo said the SEC should have an open hand to work with key players active in the blockchain and digital asset space to make the digital and blockchain space better and safer. In his words;

 “Regulation should be aimed at supporting existing players and approach them With an offering that is juicy enough to spark their interest in working with the regulators to understand more about this space. We need clear and simple guidelines not different from what is obtainable around the world.”

Dr. Gilead Okolonkwo, founder, Beepmagnet

Speaking on how it impacts his operations, he went further saying;

We play in the Utility space and our focus on consumer Loyalty. The Traditional Loyalty industry has applied, Digital token and points for decades.”

“We have decided to enhance the same process using Blockchain as a Utility Token. How Much of what SEC understands about this process is Yet to be known. we will be happy to see positive Support to sustain consumer Loyalty on Blockchain and a clear position about Utility Tokens as accommodated Across the Global best regulatory position on Utility tokens that are Gifted or used as a reward within an ecosystem. “

DR. GILEAD OKOLONKWO, FOUNDER, BEEPMAGNET

Dr. Gilead is of the opinion that the regulation implementation should be a step by step process and there should be clear appreciation and support conditions that encourage players who are already playing in the space. He said “if SEC’s motive is to support and provide an enabling environment to support this innovation it is a welcome development. However, there are Some gray Areas That needs to be addressed urgently so that Key players in the space will be very confident of this process.”

Chuta Chimezie, co-founder of Blockchain Nigerian User Group also lent his voice to the discussion, saying “SEC Nigeria has consistently shown that it has clear understanding of her role in creating a conducive environment for the growth and development of Virtual Financial Assets and Cryptocurrencies in general.”

See also: Yele Bademosi, Cofounder of Bundle.Africa shared his thoughts on SEC’s statement on cryptocurrency

He went further saying;

This recent publication further solidifies that effort, and  will act as a catalyst to mass adoption. It will also go ahead to create the much needed institutional investor confidence for the Nigeria Capital Market.”

chuta chimezie, co-founder, blockchain nigeria user group

The SEC has only just released a statement, while it is expected for a more clearer version to follow, the industry would just have to wait/engage to see what comes next. Just Franklin Peters said, we “look forward to seeing subsequent clearer updates from SEC on this subject matter”