SEC to Create Regulatory Framework for Cryptocurrencies, Other Digital Assets

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The Securities and Exchange Commission on Tuesday said it will work with the Central Bank of Nigeria and other stakeholders to create a regulatory framework for cryptocurrencies and other digital assets.

The Director-General of the apex regulator of Nigeria’s capital market, Lamido Yuguda, said this at the joint session of the Senate Committee on Banking, Insurance and other Financial Institutions, Capital Market and ICT and Cyber Crime in Abuja.

According to a statement by SEC, Yuguda assured that the commission was committed to enhancing financial inclusion in the country through technology and recognised the disruption of fintech in the financial industry.

He explained that SEC will come up with a comprehensive regulatory framework that ensures that operators in the crypto asset space conduct their activities in a manner that protects investors and maintains financial system stability.

Yuguda however said to develop an appropriate regulatory framework, regulators needed to understand the crypto asset space to be better positioned to address identified risks.

He noted that the commission will continue to monitor the “developments in the digital asset space and further engage/collaborate with all critical stakeholders, including the CBN, to create a regulatory structure.”

Recall that the CBN had earlier directed banks and other financial institutions in the country to stop transacting in crypto and close all cryptocurrency accounts.

The directive attracted criticisms from many Nigerians who said it would be counter-productive.