Nigeria’s Securities and Exchange Commission (SEC) has said that it is trying to create a balance between investor protection and technological advancement.
Mr. Lamido Yuguda, the Director General of the Commission stated this recently in an interview.
“We believe that fintechs would not only bring about efficiency to the capital market but would also serve as a veritable tool for advancing Nigeria’s Financial Inclusion agenda. However, there is a need to develop an appropriate regulatory framework to ensure the safety of innovation to investors and preserve market integrity.”
According to the SEC DG, Nigeria’s strategies in developing a framework for digital assets were in tune with the approach adopted by several securities and exchange commissions around the world.
“In the UK, the Financial Conduct Authority (FCA) requires firms that carry on specified activities, by way of business, involving a crypto asset, to be authorized. Crypto assets are viewed as financial products in South Africa and the Financial Sector Conduct Authority (FSCA) requires persons carrying out associated activities to be regulated.
“In Malaysia, operators of digital asset platforms are required to be approved by the Securities Commission (SC) as recognized market operators. Several other securities regulators have taken similar positions,” he said.
He noted that the Commission will engage all the relevant stakeholders in coming up with the regulatory framework.
“The SEC will continue to monitor developments in the digital asset space and further engage/collaborate with all critical stakeholders, including the CBN, to create a regulatory structure that enhances economic development while promoting a safe, innovative and transparent capital market.”