Regulation
Nigerian Finance Minister Asks SEC to Look into Cryptocurrency Regulation
Nigeria’s Finance Minister Wale Edun has called for the creation of cryptocurrency regulations as the country was introduced to the new Securities and Exchange Commission (SEC) board.
Local media quoted Edun urges SEC to address complexities of cryptocurrency regulation.
According to the minister, cryptocurrencies are a “rapidly evolving” and “complex” sector, and he believes that rigorous oversight is necessary to preserve the integrity of the Nigerian financial market.
The minister’s comments came during the inauguration of the council in Abuja.
The seven-member SEC Board of Directors was approved by President Bola Tinubu on April 19, 2024. It comprises SEC Chairman Mairiga Katuka, Managing Director Emomotimi Agama, Executive Commissioner for Legal Affairs and Enforcement Frana Chukwuogor and Executive Commissioner for Operations Bola Ajomale.
Since the appointment of the board, the SEC has plans revealed update its regulations on the issuance, offering, exchange and custody of digital assets. This included the introduction of a special compliance program called the Accelerated Regulatory Incubation Program (ARIP) to help crypto entities comply with local requirements.
However, Edun believes that these amendments are not enough. He warned that crypto entities could exploit the country’s minimum registration requirements and called for the implementation of corporate governance practices.
“We must also be wary of regulatory arbitrage,” Edun warned, adding that the commission must “promptly identify and disclose conflicts and adhere to global best practices.”
He also stressed the need to stay informed and proactive, citing developments in digital currency, artificial intelligence (AI) and global digital transitions.
“Unlike core industries with established technologies, the financial sector is evolving rapidly [..] To provide the necessary approvals and guidance, the SEC must remain informed and adaptable.
Katuka responded to the minister by assuring that the SEC would seek to create a more prosperous and resilient financial ecosystem. He also expressed optimism about Nigeria’s future economic prospects, adding that the reforms of the current administration would “generate economic growth.”
Nigeria’s regulators are considering using emerging technologies to boost its economy. On July 4, the National Information Technology Development Agency in Nigeria announced his plans deploy research centers focused on key technologies such as Blockchain and AI.
These developments come against the backdrop of Nigeria’s legal standoff with cryptocurrency exchange Binance and its executive Tigran Gambaryan, who was arrested by the Economic and Financial Crimes Commission (EFCC). since February.
Despite calls from US lawmakers Alleging baseless accusations, Nigeria has defended due process.