The Crypto Market Offers Opportunity, SEC Nigeria Says

An SEC Nigeria representative has come out to admit that the crypto market offers opportunity and potential. So, the Nigerian government cannot just ignore it. SEC means the Security and Exchange Commission and they generally regulate financial markets in Nigeria.

The Association of Capital Markets Academics recently held a virtual lecture with SEC. There, SEC said it is looking to provide a framework to regulate cryptocurrencies. This framework will help take care of general international challenges digital assets and cryptocurrencies have.

Timi Agama, the HOD, Registration, Market Infrastructure and Innovation of SEC Nigeria said:

“There is a lot of investment move into the crypto market. Soon, it will reduce the volume of investments in the stock market.

The SEC desires to provide a regulatory framework to take care of challenges we see internationally as the world is gradually focusing on digital and crypto-assets. Thus, there is a great opportunity in the crypto market.

“For us at SEC and the capital market, it is something we will look at. No, we cannot be static when the world is moving forward.”

 – Timi Agama, Head of Exchanges and Market Infrastructure, SEC Nigeria.

Meanwhile, Agama said the SEC will review and come up with regulations to guide the crypto market. The crypto market offers opportunity for foreign portfolio investment and foreign direct investment. Investments like these can improve the Nigerian capital market.

Consumer protection is a huge challenge in the crypto space. Thus, Mr. Agumo, the Director of Financial Policy and Regulation Department, CBN said:

“The National Security Adviser heads the committee on cryptocurrency and members include EFCC, NFI, NAICOM, and SEC. So, all regulators will strategize and make a national decision about the crypto market, not just a monetary policy position.

We have issued our initial draft. However, we could not conclude due to Covid-19. Due to conflicts of interest, we will reconvene to take a national position. We cannot keep working on the basis of CBN’s position or SEC’s position.”  

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