Regulation
Regulation of cryptocurrencies and digital assets under full control
The Securities and Exchange Commission (SEC) asserts that the regulation of cryptocurrencies and other digital assets is under its complete control and regulation.
The Director General of the SEC, Dr Emomotimi Agama, said this at the first annual conference of the Association of Capital Market Academics of Nigeria (ACMAN), on Thursday in Abuja.
Agama described crypto assets as digital or virtual assets used by cryptography for security purposes.
He said more than 15,000 cryptocurrencies had been created, of which Bitcoin was the most popular.
The CEO said the regulatory landscape for cryptocurrencies was not yet firm, even in the United States.
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According to him, the volume of crypto transactions in Nigeria had reached $56.7 billion between July 2022 and June 2023, hence the SEC’s efforts.
Agama cited a survey that found 33.4% of Nigerians used or owned cryptocurrencies.
“The secret to using crypto is what drives its adoption by young people. Some people don’t have a bank account but they have a crypto wallet. Crypto is like air, can you put it in a cage, no. What you can do is build risk management around it,” he said.
Agama said the commission would continue to educate investors on the risks associated with digital assets so that they can make wise investment decisions.
Chief Osita Izunaso, chairman of the Senate Capital Market Committee, said the country needs effective crypto regulation to benefit from the market gains.
Izunaso said the lack of effective regulation of cryptocurrencies had exposed many investors to fraud.
He called for synergy among all stakeholders to exploit opportunities in the crypto space.
The Director General of the Debt Management Office, Mrs Patience Oniha, called for sensitization to educate investors to make informed decisions.
Mr. Bello Hassan, Managing Director of the Nigeria Deposit Insurance Corporation, said cryptocurrencies had become mainstream as young people frequented the market.
Hassan called on the SEC to constantly inform investors with unbiased information about the risks associated with trading in the crypto market.
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Professor Uche Uwaleke, President of ACMAN, said the conference aimed to examine possibilities for expanding regulation of the financial sector.
Uwaleke said the conference would also explore ways to integrate crypto assets into the regulatory space.
The News Agency of Nigeria (NAN) reports that ACMAN has awarded many players in the financial and capital markets for their various contributions to the advancement of the markets.
The conference was organized by ACMAN in collaboration with SEC.