Nigerian SEC now Committed to Regulate Crypto says Cryptocurrency Market too Big to Ignore

By: Dickson Arinze

February 22, 2021 2:53 PM

The Securities and Exchange Commission of Nigeria says it is now ready to develop a clear-cut crypto regulatory framework in the country.

In wake of CBN ban on cryptocurrencies, the SEC suspended its planned crypto regulation backing the Central Bank ban. Although that seems to have changed as the Nigerian Securities and Exchange has got the regulatory framework underway.

Premium Time reported that both the SEC and CBN will be working together to create a concrete regulatory framework for cryptocurrencies in Nigeria.

According to the commission registration, exchange, market infrastructure, and innovation head Timi Agama, it's is extremely difficult for regulators to ignore the crypto market now valued at $1.74 trillion.

On Sunday at the FCT Abuja. During a virtual conference organized by the association of capital market Academics of Nigeria, Agama added:

“Part of the desire of the SEC even in the future is to provide a regulatory framework that will take care of all these challenges that we have seen internationally and the entire world is grappling with in terms of cryptocurrency and digital assets. For us at SEC and capital market, it is something to look at, the world cannot be moving forward and we will be static, no.”

Agama claims the SEC sees cryptocurrency as an avenue for attracting foreign direct investment (FDI) into the country.

CBN’s director of financial policy and regulation Kevin Amigo who says the ban was essential to give the central bank adequate time to address the anonymity of crypto transactions.

However, Nigeria crypto exchanges were adhering to Know Your Customer (KYC) best practices which included the bank verification number, or BVN, for authentication.

As part of the address during the ACMAN lecture, Amigo revealed that the CBN and SEC are working with other Federal agencies to develop a national regulatory strategy for cryptos in Nigeria.

As previously reported by Coinnewsafrica Nigeria has seen growing interest in Blockchain and crypto adoption which propelled several stakeholders during the event to call on regulators to pursue more minute laws rather than outright bans