Nigeria’s Securities and Exchange Commission (SEC) says it is collaborating with the Central Bank of Nigeria and critical stakeholders to create a regulatory framework for cryptocurrencies and other digital assets.
Lamido Yuguda, the Director-General of SEC – Nigeria’s capital market apex regulator – stated this on Tuesday during a joint session of the Senate Committee on Banking, Insurance and other Financial Institutions, Capital Market and ICT and Cyber Crime in Abuja.
Nigeria’s Central Bank had ordered banks and other financial institutions in the country to close all accounts linked to cryptocurrency.
Yuguda was quoted in a statement from SEC as saying 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 said the commission would advance efforts towards developing 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.
“We believe that FinTech would not only bring about efficiency to the capital market but would also serve as a veritable tool for advancing Nigeria’s Financial Inclusion agenda.
“However, there is a need to develop an appropriate regulatory framework to ensure the safety of innovation to investors and preserve market integrity.”
“The SEC will continue to monitor developments in the digital asset space and further engage/collaborate with all critical stakeholders, including the CBN, to create a regulatory structure that enhances economic development while promoting a safe, innovative and transparent capital market.”