Nigeria SEC says Crypto market is too big to disregard, hence working on something

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Nigeria’s Securities and Exchange Commission notes that it is committed to establishing a consistent regulatory structure for cryptos in the region.

Having recently suspended its proposed crypto regulations following the ban on the central bank, Nigeria’s Securities and Exchange Commission has clarified its stance on the country’s cryptocurrencies.

According to the Premium Times report, both the SEC and the Central Bank of Nigeria will work collaboratively to establish a concrete regulatory structure for cryptocurrencies in Nigeria.

For Timi Agama—the Commission for Registration, Exchanges, Business Infrastructure and Innovation Head—regulators in Nigeria cannot afford to neglect the $1.74 trillion crypto market.

Speaking at a virtual conference organised by the Association of Nigerian Capital Market Academics in the capital, Abuja, on Sunday, Agama said:

“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.”

According to Agama, the SEC sees cryptocurrency as a medium for attracting much-needed foreign direct investment, or FDI, to the nation. Indeed, according to a recent study by the National Bureau of Statistics, 26 of the 36 states of the federation did not earn any FDI for the whole of 2020.

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For Kevin Amugo, CBN Director of Financial Policy and Regulation, the ban was appropriate to allow the central bank enough time to resolve the anonymity of crypto transactions.

However, at most, most crypto transactions are pseudonymous. Blockchain intelligence firms like CipherTrace and Chainalysis have developed tools that allow for rigors forensic cryptocurrency investigations.

Crypto exchanges in Nigeria have also adhered to Know The Customer’s best practises, including bank verification number, or BVN, authentication.

As part of the address during the ACMAN lecture, Amugo disclosed that CBN and SEC were collaborating with other federal agencies to establish a national regulatory approach to cryptography in Nigeria.

During the case, many stakeholders called on regulators to implement more complex regulations than bans.

As we have previously mentioned, Nigeria and Southeast Asia were at the forefront of global adoption in 2020. The Nigerian Bitcoin (BTC) premium is currently the highest in the world following the CBN ban.

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