Nigerian SEC Seeks Tougher Crypto Regulations, Removes P2P on Platforms – Times Tabloid

The Securities and Exchange Commission (SEC) of Nigeria, under the leadership of Acting Director-General, Dr. Emomotimi Agama, has proposed a stricter regulatory approach for the country’s cryptocurrency sector. This position prioritizes reducing potential market manipulation and protecting the integrity of the Nigerian capital market.

Removing Naira from P2P platforms: a potential solution

Agama highlights the recent rise in peer-to-peer (P2P) crypto exchanges and its reported impact on the Naira exchange rate. To address concerns over market manipulation in the P2P space, the SEC is considering removing the Naira from the list of trading currencies on these platforms.

Read also: Binance to terminate all Naira (NGN) related services. What Nigerian Users Should Do

The Commission issued a statement outlining this proposal, in which Dr Agama said: “One of the things that needs to be done is to remove the naira from the P2P space in order to avoid the level of manipulation that is currently happening. »

He went on to “call on participants in the crypto space to be patriotic enough to name and shame those involved in negatively disrupting markets.” The SEC believes that this measure will help mitigate illegal activities and stabilize the Naira.

Balancing innovation and national interest

Dr. Agama recognizes the potential of blockchain technology and cryptocurrencies. It highlights the SEC’s commitment to fostering a regulatory environment that encourages innovation while preserving national economic interests.

This was highlighted in a Commission statement, quoting Dr. Agama as saying: “We want to ensure that this direction will ensure that individuals or institutions that require registration with the SEC are promptly licensed.

We assure you that we will give you advice where necessary and will do our best to streamline processes to make things less difficult. The SEC is currently developing comprehensive guidelines for the digital assets industry, encompassing areas such as crypto wallets, custody services and fund management.

Collaboration for a thriving digital asset market

The SEC is actively seeking cooperation from industry stakeholders, including cryptocurrency exchanges and wallet providers. The aim is to create a well-regulated digital assets market that contributes positively to Nigeria’s economic growth.

Dr. Agama encouraged open communication and urged industry participants to identify and report any harmful practices in the market. He said: “I would like to seek your cooperation in resolving this issue as we implement the regulations in the coming days that would take control of these areas.

Together, I am confident that we can weed out the 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.

This stricter regulatory stance follows a series of events that have impacted the Nigerian crypto landscape. The classification of cryptocurrency trading as a national security issue by the National Security Advisor (NSA) in February 2024 marked a significant change.

Subsequently, the Central Bank of Nigeria (CBN) ordered fintech companies to restrict accounts associated with crypto transactions and report them to law enforcement. These actions, along with the SEC’s proposed increase in crypto exchange registration fees from 30 million naira ($18,620) to 150 million naira ($93,000), indicate a more cautious approach by financial regulators.

Read also: Ezyswap: The Most Reliable Way to Sell Crypto for Naira

Industry response and way forward

The Blockchain Industry Coordination Committee of Nigeria (BICCON) previously sought talks with the SEC to establish common ground for crypto regulation. Industry stakeholders, such as the Blockchain Technology Association of Nigeria (SiBAN), have attributed the rise of P2P commerce to the lack of clear regulation.

Going forward, collaboration between the SEC, industry stakeholders and government agencies will be crucial in establishing a balanced and effective regulatory framework for the Nigerian cryptocurrency sector.

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