The Securities and Exchange Commission (SEC) of Nigeria has reiterated its resolve to uphold market integrity and safeguard investor interests through decisive action concerning the trading of virtual assets. This stance was communicated by the Acting Director-General of the SEC, Dr. Emomotimi Agama, during a virtual meeting with the Blockchain Industry Coordinating Committee of Nigeria (BICCoN), the umbrella body representing major blockchain and cryptocurrency associations in the country.
Agama emphasised that the SEC will not hesitate to exercise its statutory mandate to address issues that pose threats to national interests. The Commission aims to collaborate with stakeholders to ensure the Nigerian capital market maintains global respect for decency and fair play.
The recent concerns regarding crypto peer-to-peer traders and their perceived impact on the Naira exchange rate have underscored the need for collective dialogue within the financial market ecosystem, according to the SEC boss. He stated, “There are basic practices enshrined in the Investments and Securities Act 2007, and we expect everyone to abide by those rules. However, for specific digital asset regulatory regimes that many have been calling for, we want to assure you that we are working tirelessly to establish an accommodating regulatory guideline for digital assets.”
The proposed regulatory guidelines, currently being fine-tuned with stakeholder input, will encompass various activities within the cryptocurrency ecosystem. The aim is to include, support, and properly regulate every Nigerian contributing to economic progress through the industry. Agama expressed his commitment to an innovative digital asset regulatory regime that will sustain Nigeria as Africa’s digital asset powerhouse, with solutions like Real World Asset Tokenization driving wealth and catalysing the capital market.
“We must explore innovative solutions to this problem and strike the right balance between encouraging innovation and safeguarding our national economic interests. This we will do in a friendly and firm manner to enable us to achieve the desired result,” Agama stated.
He acknowledged the president’s concern for the teeming youth involved in space and the need to develop an ecosystem that the nation can be proud of. Manipulations and activities undermining national interests would not be acceptable, as the SEC holds the mandate to regulate all capital market activities under Section 13 of the Investments and Securities Act.
Agama expressed gratitude to BICCoN’s leadership and assured them of the Commission’s readiness to collaborate closely with all stakeholders in the cryptocurrency ecosystem. He sought their cooperation in addressing challenges, particularly the need to delist the naira from the peer-to-peer space to curb market manipulation. Participants in the crypto space were urged to be patriotic and identify those disrupting the markets negatively.
The Acting Director-General committed to ensuring efficient registration and licensing processes for institutions requiring SEC registration, providing guidance, and streamlining procedures.
In response, the Chairman of the Fintech Association of Nigeria, Dr. Babatunde Obrimah, commended Agama for his bold steps and the SEC’s relationship with the ecosystem. He pledged their commitment to supporting the Acting Director-General in sanitising the virtual ecosystem. BICCoN also requested the establishment of a working group to tackle challenges facing the crypto space and move the market forward.