In Brief:
- Nigeria SEC created fintech division for cryptocurrency investment
- It will start regulating once cryptocurrency trading starts in the Nigerian banking system
- The SEC will work with fintech firms to boost the marketing of domestic securities to prevent capital flight.
The Nigeria Securities regulator has created a fintech division to study crypto investments and products to come up with regulations.
“We are looking at this industry attentively to see how we can bring up legislation that will enable investors to secure their investment blockchain,” said SEC Director-General Lamido Yuguda in a virtual interview with Reuters in Abuja.
The director-general did not provide any time frame for issuing regulations. However, the regulations will be put in place once cryptocurrency trading is allowed within the Nigerian banking system. The SEC has sought to regulate crypto on the grounds that they qualify as securities transactions.
Nigeria is one of the biggest markets for crypto trading. The central bank banned lenders in February from transacting or facilitating deals in cryptocurrencies. The SEC is seeking to work with fintech firms to boost the marketing of domestic securities to prevent capital flight. This month, the central bank blocked the accounts of six firms for allegedly sourcing funds from illegal foreign exchange.
Yuguda also hinted that the commission was in close collaboration with the central bank for the upcoming digital currency project e-naira. Previously, the Central bank of Nigeria (CBN) also announced to work with Bitt Inc. for its digital currency project, e-Naira.
