The Securities and Exchange Commission (SEC) has advocated for the delisting of the naira from peer-to-peer platforms in the cryptocurrency space, aiming to mitigate potential manipulation risks and safeguard the integrity of the capital market while protecting the interests of investors.
In a virtual meeting held on Monday with the Blockchain Industry Coordinating Committee of Nigeria (BICCoN), the Acting Director General of the SEC, Dr. Emomotimi Agama, emphasized the Commission’s commitment to addressing issues detrimental to national interests and ensuring a fair and transparent financial market ecosystem.
He said, “There are basic practices as enshrined in the Investments and Securities Act 2007 and we expect that everyone will abide by those rules. Some may say no rules to play by, but do not forget that we have the Investments and Securities Act 2007 that some actions by participants today may be violating, hence the law is the law irrespective of the technology used.
“However, for specific Digital Asset regulatory regime 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 SEC as your regulator is desirous to work with you by providing a level of assurance that is needed by all that are operating within the rules of the market”.
The DG stated that the proposed regulatory guidelines which is currently being fine-tuned with suggestions by various stakeholders, will encompass various activities within the cryptocurrency ecosystem ranging from Wallet providers, digital asset custodians and fund managers, Cryptocurrency Crowdfunding, Initial Coin Offerings (ICOs), Security Token Offerings (STOs), Initial Exchange Offerings (IEOs), Cryptocurrency Exchange platform providers, Virtual Asset brokerage services etc., ensuring that every Nigerian playing within the industry with the potential to contribute to economic progress is included, supported and properly regulated.
“I am poised for an innovative digital asset regulatory regime that will sustain Nigeria as Africa’s Digital Asset Powerhouse with diverse solutions like Real World Asset Tokenization (RWA) that will drive wealth and catalyse our 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”.
“We have a great market ahead of us and we have the talents and the people to make the market great. Mr. President is concerned about the teeming youths involved in this space and would encourage them to do the right thing and develop an ecosystem that we all will be proud of. It becomes necessary that we do what is right. Manipulations and all forms of activities that undermines our national interest would not be acceptable. It is therefore very important that we know that the SEC by virtue of the Section 13 of the ISA speaks to the regulation of all capital market activities.
“With our deep understanding of this industry and the cryptocurrency sub sector, we recognize the importance of collaboration and cooperation in addressing the challenges we face; hence your insights and suggestions are invaluable as we seek to navigate these complexities together. We need your support as much as you need ours.
“On that note, I want to emphasize that we are working on different fronts to sustain decent practices within our market, however, we are here to meet ourselves to know those playing within the sector decently and are open to hearing your suggestions on how we can effectively manage all obscure cryptocurrency trading activities within our jurisdiction p2p inclusive irrespective of the challenge we all know that p2p trading posses. 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.
Furthermore, Dr. Agama emphasized the need for collaboration and cooperation among stakeholders to address challenges in the cryptocurrency space effectively. He called for patriotic actions to name and shame individuals or institutions involved in disruptive trading practices that undermine national interests.
“I want to seek your co-operation in dealing with this as we roll out in the coming days the regulations that would take control of these areas. We want to assure that this management will ensure that people or institution that require registration with the SEC are quickly licenced. We assure you that we will give guidance when necessary and do well to streamline the processes to make it less difficult.
“We ask that those involved in sharp practices that undermine national interest should cease and desist. It is in our interest as a people to protect what belongs to us. We encourage you to reach out to us by naming and shaming the bad actors. Together, I am confident that we can weed out bad actors and harness the immense potential of this progressive technology for the benefit of all Nigerians in tandem with this government’s renewed hope agenda” he added.
In response to the SEC’s initiatives, Dr. Babatunde Oghenobruche Obrimah, Chairman of the Fintech Association of Nigeria, commended the bold steps taken by the Director General and pledged the association’s commitment to supporting efforts aimed at sanitizing the virtual ecosystem.
Meanwhile, BICCoN requested the establishment of a working group to address various challenges facing the crypto space and facilitate market development.
Dr. Agama reiterated the SEC’s dedication to sustaining decent practices within the market while fostering innovation.
He expressed confidence in the collective efforts of stakeholders to harness the potential of cryptocurrency technology for the benefit of all Nigerians in alignment with the government’s agenda for national development.
