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



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 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”

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I’m Speechless, Dominic Rume reacts to the InksNation Scheme 



Dominic Rume, the Founder of Vorem, a digital asset firm has reacted to the Inksnation fraudulent scheme. He said I’m speechless. 

The Inksnation scheme started late last year when the leader, Omotade-Sparks published an open letter addressed to the EFCC saying it intends to use blockchain technology to solve the problem of poverty in Nigeria. 

The project which claimed to have created a cryptocurrency Pinkoin built on its own blockchain, the InksLedger – a blockchain and crypto token which has been noted to be nonexistent by local crypto experts.

The project promised outrageous monthly returns for investors. The price of its token, the Pinkoin is derived from the numbers of people that become what it describes as Living Nodes and as more people join and become Living Nodes, the value of each pinkcoin increases by the thousands of dollars. 

See also: InksNation Founder Omotade-Sparks (UDI), Officially Declared Wanted by EFCC

Mr. Dominic reacted to the InksNation issue on the CryptoTvplus Inside Blockchain program on Monday, 30th November. On the program, he also shared that money is emotional and when people lose money, it creates a bad ripple effect that could drive the technology backward (in terms of adoption and growth). 

Speaking on the EFCC effort in tackling cybercrimes involving cryptocurrency, Mr. Dominic said the agency needs professional support from the crypto industry to be able to handle these sort of criminal schemes. 

Watch the entire session here.

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SEC and Finance Ministry in Nigeria to collaborate to draft Crypto regulation



The Nigerian Securities and Exchange Commission (SEC) together with the country’s Finance Ministry will put hands together to draft a proper regulation as regards purchase and usage of cryptocurrencies in the country. This is because there is no clear regulation yet as regards cryptocurrencies and its usage in the country.

The revelation of the collaboration was made in an event organized by MasterCard and the Economist Unit tagged ‘Fintech in Nigeria: State of Play’ held in Lagos on the 24th November, 2020. At the event, Armstrong Takang, a special adviser on ICT to the Minister of Finance noted that the government of Nigeria sees an opportunity in the blockchain and cryptocurrency and is trying to draft a regulatory document that will benefit all its stakeholders. He also mentioned that the collaboration between the two parties is owed to the cross-border payment usage of cryptocurrencies. Hence, the finance ministry will be working with the Nigerian customs as well as the ministry of Trade and Industry.

The mission of the drafted adoption framework is said to be “to drive the adoption of blockchain technology in government in a way that supports efficiency, transparency, and productivity”, according to a report of the event. 

The Securities and Exchange Commission only declared cryptocurrencies as securities around mid-September 2020 and listed trading of cryptocurrencies as an activity that is regulated by the rules of the commission. The release by the commission marked the first time the government had a stance on cryptocurrencies even though it was not a clear regulation yet. The government as well gave full legalization and recognition of cryptocurrencies.

Prior to the SEC’s release that cleared the air about the government’s stance on cryptocurrencies, there were rumors around the Nigerian cryptocurrency industry about local banks freezing accounts that had anything related to cryptocurrencies. The news of the legalization was a relief to the individuals in the space as cryptocurrencies were a means of making a living for a number of people in the hard economy.

Reaction to the disclosure by Takang

However, the President of the Blockchain Association in Nigeria, Paul Ezeafulukwe has reacted to the disclosure by Takang at the event. He said as reported by Beincrypto;

“With CBN being one of the key stakeholders in the proposed blockchain adoption strategy, I do not think that CBN will eventually introduce a policy or regulation that is not aligned with the principles and strategies in the proposed document. Besides, CBN, through its representative at the stakeholder engagement, indicated its readiness in principle to provide regulatory support.” 

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CNBC’S crammer says Bitcoin is a “great alternative” to Gold



The popular host of the “Mad Money” show on CNBC, Jim Cramer has shown an intense support for bitcoin with the bullish comment he made about the digital asset recently. The show host was said to have been previously skeptical about Bitcoin as of late 2017 when the biggest cryptocurrency by market capitalization (Bitcoin) witnessed a bull run and reached its all time high as well.

Crammer is also said to be known for picking on the stock markets and being bearish but joined the moving train when he became positive about the Tesla stock before the stock witnessed mind-blowing rallying from the first quarter in 2020. However, he made a change to his stance on Bitcoin by giving a supportive statement to the asset in a tweet. 

Anthony Pompliano, who is bullish on crypto, tried to convince the TV host (Crammer) yesterday, 25th November, 2020 to get familiar and involved in Bitcoin as reported. He listed a number of persons in CNBC who are not yet involved in cryptocurrency. Crammer made a revelation in a Podcast with Pompliano that he has discovered Bitcoin to be a hedge against inflation and an asset his kids would understand;

“I’m not a, you know, a paid spokesman for why I need gold or why I need crypto but I just need something that my kids will understand as a hedge to inflation, and they will never understand gold.”

Bitcoin; cause of fall in price of gold?

Pompliano stated that “Bitcoin is stealing the market share of gold”. Looking at the price of gold since Bitcoin rallied up to about $19,000+, it could be seen that gold has fallen significantly. Could it be that institutions and individuals are moving from gold to Bitcoin?

Also, since the recent rallying, attention of institutions has been shifted to Bitcoin. Giant companies like Paypal, Grayscale have injected substantial amounts into the asset and analysts suggest these companies could be the cause in the increase. But could they be the cause for the fall in the price of gold?

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