The primary objective of investors is to exploit an investment opportunity in a manner that delivers value for money; and investors who primarily employ the capital markets as their chosen fora expect a level of security and certainty.  Therefore, regulation aims to ensure that investors are protected and ensure that a certain level of certainty exists within the capital markets. Crypto-assets are increasingly being treated as an asset class by investors, hence this same level of security of investments and certainty in crypto-markets is expected and desired by investors. Nigeria’s status as a destination/target for crypto-related investment continues to grow despite the lack of regulatory certainty.

This article takes a look at the current state of regulation on crypto assets as a tool for investments and its effect on Nigerian investors. It provides an overview on the European Union and the U.S. SEC regulations on crypto-assets, and suggests minimum, crypto-specific regulation. which protects crypto-asset users, desirable for Nigeria.