The SEC creates rules for providers of digital assets in order to prevent money laundering

The SEC creates rules for providers of digital assets in order to prevent money laundering

Amid the FG’s recent efforts to stop illicit cryptocurrency trading in the nation, new regulations to further regulate cryptocurrency trading have been introduced.
New regulations have been released by the Securities and Exchange Commission (SEC) to oversee the licensing, registration, and background checks of virtual asset service providers (VASPs).
VASPs are platforms that manage virtual asset transfers and facilitate exchanges between virtual assets (cryptocurrencies) and fiat currency, according to the Central Bank of Nigeria (CBN).
The Anti-Money Laundering (AML), Combating the Financing of Terrorism (CFT), and Countering Proliferation Financing (CPF) onboarding manual is the latest name for the handbook.

The SEC claims that the new rule attempts to prevent those with criminal records from being licensed as capital market operators. To make sure that criminals are not enrolled as operators in the financial system, the SEC has also created a new AML/CFT/CPF onboarding manual for licensing/registration and continuing screening of Digital and VASP beneficial owners.

“Based on these precise laws and regulations, the SEC is prepared to interact with legitimate VASPs.” The body mentioned
The Central Bank of Nigeria (CBN) lifted the ban on cryptocurrency trading in December 2023, two years after it was first imposed. The guidelines, titled “Guideline On Operations Of Bank Accounts For Virtual Assets Service Providers,” apply to all banks and other banking institutions (OFIs) that offer digital asset services.

Banks and other financial entities were prohibited by the action from holding, trading or conducting business with virtual currencies on their account.

The SEC claims that the new rules will strengthen the regulatory body’s commitment to maintaining the safety of investors and market integrity by supplementing the original framework.
The SEC went on to say that it was prepared to work with legitimate VASPs under established guidelines and that, in light of their most recent interaction with CBN, “more feedback is being integrated into the guidelines that will shortly be made available to the public for review before final approval.”
In the FG’s recent efforts to stop illicit cryptocurrency trading in the nation, new regulations to further regulate cryptocurrency trading have been introduced.