Nigeria's Securities and Exchange Commission (SEC) said it is taking steps to eliminate illegal trading activities in the virtual assets space. It gave the warning during a
virtual meeting with the Blockchain Industry Coordinating Committee of Nigeria
(BICCoN).
Acting
Director-General SEC Dr. Emomotimi Agama, at the meeting with the umbrella body for
Nigerian blockchain and cryptocurrency associations announced the Commission's
commitment to upholding the integrity of the capital market and safeguarding the
interests of all investors.
Agama
said: "The Commission has come as a partner to seek collaboration
in making sure that the capital market community is one that is respected
globally for decency and fair play."
He
indicated that recent concerns regarding crypto peer-to-peer (P2P) traders and
their perceived impact on the exchange rate of the Naira has called for
collective action and dialogue within the financial market ecosystem.
Commenting
on the regulatory framework for digital assets, Agama reassured stakeholders
that the SEC is working to establish guidelines that will accommodate the
industry. He mentioned that these guidelines, which are currently being refined
with input from various stakeholders, will cover activities within the cryptocurrency
ecosystem, such as wallet providers, digital asset custodians, fund managers,
and cryptocurrency exchange platform providers.
Agama
expressed his desire for an innovative digital asset regulatory regime that
will position Nigeria as Africa's Digital Asset Powerhouse. He emphasized the
importance of striking the right balance between encouraging innovation and
safeguarding national economic interests. Agama added, "Manipulations and
all forms of activities that undermine our national interest would not be
acceptable."
Additionally,
Agama thanked the leadership of the BICCoN and assured them of the SEC's
readiness to work closely with all stakeholders in the cryptocurrency ecosystem
to create a better country for everyone. He emphasized the importance of
collaboration and cooperation in addressing the challenges faced by the
industry, stating, "Your insights and suggestions are invaluable as we
seek to navigate these complexities together."
Agama
also urged participants in the crypto space to be "patriotic enough to
name and shame those that are involved in disrupting the markets
negatively," and called for the delisting of the Naira from P2P platforms
to prevent manipulation.
Chairman of the Fintech Association of Nigeria, Dr. Babatunde Oghenobruche Obrimah, lauded the SEC Director-General for his bold steps and expressed his organization's commitment to supporting the SEC's efforts to clean up the virtual ecosystem. Meanwhile, BICCoN requested the establishment of a working group to address the challenges facing the crypto space and propel the market forward.
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