Cryptocurrency market too big to ignore, says the Nigerian SEC

After recently suspending plans to regulate crypto following the central bank’s ban, The Nigerian Securities and Exchange Commission has clarified its position on cryptocurrencies in the country.

According to a report in the Premium Times, Both the SEC and the Central Bank of Nigeria will work together to develop a specific legal framework for cryptocurrencies in Nigeria.

For Timi Agama, Head of Registration, Exchanges, Market Infrastructure and Innovation at the Commission, Nigerian regulators cannot afford to ignore the $ 1.74 trillion crypto market.

Cryptocurrency market too big to ignore, says the Nigerian SEC
Cryptocurrency market too big to ignore, says the Nigerian SEC

At a virtual conference organized by the Nigerian Capital Market Scholars Association in the capital Abuja on Sunday, Agama remarked:

‚ÄúPart of the SEC’s wish is to continue creating a legal framework that addresses all of these challenges that we have seen internationally and that the whole world is grappling with in relation to cryptocurrencies and digital assets. For us in the SEC and in the capital markets, it’s something to watch out for, the world can’t move forward and we can’t be static, no. “

According to agama The SEC sees cryptocurrencies as a channel to attract much-needed foreign direct investment (FDI) into the country. Indeed, according to a recent report by the National Statistics Office, 26 of the 36 states did not receive an IDF in all of 2020.

For Kevin Amugo, Director of Financial Policy and Regulation at CBN, The ban was necessary to give the central bank enough time to check the anonymity of crypto transactions.

Yet, Most cryptocurrency transactions are pseudonymous at best. Blockchain intelligence companies like CipherTrace and Chainalysis have developed tools that enable robust forensic investigation of cryptocurrencies.

What’s more Cryptocurrency exchanges in Nigeria adhere to Know Your Customer best practices, including authenticating the bank verification number or BVN.

Amugo revealed this during the speech at the ACMAN conference The CBN and SEC worked with other federal agencies to develop a national regulatory approach to cryptocurrencies in Nigeria.

During the event, Various interest groups called on the regulators to demand more differentiated laws than outright bans.

As previously reported by Cointelegraph, Nigeria and Southeast Asia topped the global launch in 2020. The Bitcoin Premium (BTC) in Nigeria is currently the highest in the world after the CBN ban.

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