Nigerian ministers urge the SEC to tackle crypto regulation challenges as Nigeria’s cryptocurrency regulations are being updated.
Wale Edun, the Nigerian Minister of Finance and Coordinating Minister of the Economy, has urged the newly established Securities and Exchange Commission (SEC) board to resolve the intricacies of cryptocurrency regulation.
During the board’s inauguration in Abuja, Edun underscored the necessity of maintaining market integrity in Nigeria’s capital market by ensuring stringent supervision, particularly in fast-moving and complex areas such as cryptocurrencies, reports local media.
Minimal registration requirements
Edun cautioned that companies may exploit minimal registration requirements to fraudulently claim they are licensed, undermining market integrity.
He emphasized the potential for regulatory arbitrage and implored the SEC to adhere to global best practices, identify and disclose conflicts promptly, and implement top-tier corporate governance practices.
The minister also urged the newly appointed SEC board members to implement innovative strategies to regulate the country’s capital market effectively.
He underscored the significance of remaining informed and proactive in the face of the accelerated advancements in artificial intelligence, digital currency, and the broader digital transition.
“Unlike basic industries with settled technologies, the financial sector is rapidly evolving with innovations in fintech, AI and crypto. To provide necessary approvals and guidance, the SEC must stay informed and adaptable.”
The Securities and Exchange Commission (SEC) guarantees innovation and expansion.
The minister was reassured by Mairiga Katuka, the Chairman of the SEC board, that the board would capitalize on its collective passion, innovation, and expertise to stimulate development.
Katuka expressed confidence in Nigeria’s future economic prospects, citing the current administration’s economic growth-promoting reforms.
The Chairman of the Securities and Exchange Commission (SEC) underscored that the board would foster a more resilient and prosperous financial ecosystem by promoting a shared sense of purpose, integrity, and diligence.
Nigerian President Bola Tinubu approved the appointment of seven individuals to the SEC board on April 19, 2024. They comprised Katuka, Emomotimi Agama (director-general), Frana Chukwuogor (executive commissioner of legal and enforcement), and Bola Ajomale (executive commissioner of operations).
The SEC amended its regulations on digital asset issuance, offering platforms, exchange, and custody in response to the appointments, indicating its intention to revise these critical regulations.
The regulatory environment is intended to be more comprehensive and responsive to the intricacies of digital asset markets through the amendment procedure.