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- 1 Rules of the Nigerian SEC might trouble local exchanges due to huge registration fines.
- 2 The crypto exchange to register with SEC Nigeria has to pay N500 Million naira as application money.
- 3 Ophi said that this might give a chance to foreign exchanges to capture the majority of Nigerian cryptocurrency market.
As per a crypto analyst of Nigeria, the new rules that the nation’s Securities and Exchange Commission (SEC) may prove to be difficult for the regional exchanges and will probably fail to comply with them.
However the analyst added that the recent rules are more favorable for foreign exchange rather than the local crypto related business. Earlier, the bans have largely affected institutional investment in the nation in this specific industry, however, the new regulations might make a path for investment in coming times.
Nigerian crypto analyst Rume Ophi voiced the fear that several crypto exchanges may be forced to scale back or shut down permanently due to SEC’s high minimum paid capital requirement of $555,620 (N500 Million naira).
Ophi said that this might give a chance to foreign exchanges to capture the majority of Nigerian cryptocurrency market, which might also result in the end of regional crypto exchanges rule on the market.
Nigeria is one of the nations having the highest crypto adoption rate and also has highest awareness about crypto. The survey was done among 15 countries including Nigeria, India and others.
It is remarkable that it has a fair and exceptional rate of cryptocurrency adoption and is one of the largest economies of Africa. The recent development in the Nigerian crypto market will enable foreign investors to invest more in the nation’s market.
Other Developments in the Global Crypto Market
Bitcoin celebrated the new year by achieving the milestone of $45k. When writing, it was trading at $43,052.08.
Matrixport, a leading digital asset management, released its research report on Tuesday which states why the U.S the securities and exchange commission would reject the application for Bitcoin spot ETF in the ongoing month.
The report highlights that all the applications for Bitcoin spot ETF are falling to meet “a critical requirement” that necessitates the U.S regulators approval.
Despite recent discussion and modified S-1 prospectuses between filers and the U.S SEC, Matrixport analysts Markus Thielen noted in a report that these applications still fall short of a fundamental criteria that must be addressed before the regulators can accept them. Is
Some leading observers of the global finance market believe that the involvement of the U.S is mandatory in the crypto sector as the nation is known as one of the most developed nations globally and is one of the leading economies.
On records and off the records both the data reveals that the U.S is still one of the biggest users of cryptocurrencies and majority of leading crypto-companies are based in the U.S.
However, in the past few quarters, the U.S SEC has troubled the giants of the market including Coinbase, Gemini and Binace.
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
