Regulation
Nigerian Finance Minister Asks SEC to Address Cryptocurrency Regulations
Nigerian Finance Minister Wale Edun has called for the creation of cryptocurrency regulation, ahead of the country’s newly established Securities and Exchange Commission (SEC) committee.
Local media quoted Edun urges SEC to address complexities of cryptocurrency regulation.
According to the minister, cryptocurrencies are a “fast-moving” and “complex” sector. Therefore, he believes that strict supervision is a necessity to preserve the integrity of the Nigerian capital market.
The minister made the remarks 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 includes SEC Chairman Mairiga Katuka, Director General Emomotimi Agama, Executive Commissioner for Legal and Enforcement Frana Chukwuogor and Executive Commissioner for Operations Bola Ajomale.
Since the appointment of the board, the SEC has plans revealed to update its regulations for digital asset issuance, offering platforms, exchanges, and custody. 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 urged the implementation of corporate governance practices.
“We must also be alert to regulatory arbitrage,” Edun warned, adding that the commission must “swiftly 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 digital transitions in general.
“Unlike basic 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, 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 current administration’s reforms would “generate economic growth.”
Regulators in Nigeria have been keeping a close eye on the use of emerging technologies to boost their economy. On July 4, the National Information Technology Development Agency in Nigeria announced his plans to implement research centers focused on key technologies such as Blockchain and AI.
These developments come against the backdrop of a legal dispute in Nigeria 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 by making unfounded accusations, Nigeria has defended due process.