SEC Management Seeks Regulation Of Digital Assets, Says $2 Trillion Crypto Can’t Be Ignored

Timi Agama, head of registration, exchanges, market infrastructure and innovation department of SEC, was speaking at a virtual lecture organised by the Association of Capital Market Academics of Nigeria (ACMAN) in Abuja, on Sunday.

The Central Bank of Nigeria (CBN) had asked commercial banks to block accounts of cryptocurrency traders in their systems.

After the directive, Nigerians took to social media to condemn the decision.

NAN rates Agama as pronouncing cryptocurrency is a $2 trillion marketplace that can't be not noted.

He said the sector can not be transferring forward while Nigeria stays static.

Agama stated despite the fact that SEC or the capital marketplace would not accommodate or encourage any fraudulent practices that allowed for cash laundering, cryptocurrency is a marketplace worth searching into.

“There is a lot of funding pass into the cryptocurrency market and the tendency is that it'll lessen the amount of investments within the stock market. Part of the preference of the SEC even inside the future is to offer a regulatory framework a good way to contend with these kinds of challenges that we've got visible across the world and the whole international is grappling with in terms of cryptocurrency and digital property,” he stated.

“For us at SEC and capital marketplace, it's miles something to observe, the arena cannot be transferring forward and we will be static, no. It is important for us to check, recognize, appreciate and introduce regulations so as to guide the movement of the marketplace in this route.

“A market that has opportunity for ICOs, derivatives, isn't a market we can ignore. It is our desire that we do more work, collaborate as regulators and analyse to ensure that we offer a degree gambling discipline wherein Nigerians, worldwide traders and whoever is interested in this space may be cushty and glad.

“I desire that during doing that, we are going on the way to power foreign portfolio funding, overseas direct investment (FDI) into this usa and construct our capital market.”

In his feedback, Kevin Amugo, CBN director of monetary policy and regulation branch, stated the ban changed into to enable it paintings collectively with stakeholders in addressing the anonymity of the generation.

He stated the CBN would keep to increase rules that might optimise the opportunities of the economic technology enterprise and promote economic panorama of the us of a.

Amugo added that purchaser safety changed into a big project inside the cryptocurrency marketplace because it changed into speculative and no financial fundamentals drove its charge.

“The committee on cryptocurrency headed by way of the National Security Adviser and members are EFCC, NFIU, SEC, NAICOM and all regulators to strategize and provide you with a country wide function not a financial coverage position,” he said.

“We have issued our initial draft but COVID-19 impeded our efforts to finish our moves. Because of pastimes crypto has regenerated, I suppose it's miles high time we reconvened and ensure that we take a national role, in order that  what's issued is a countrywide position not a CBN’s or SEC’s position.”

Amugo stated the CBN isn't always stifling fintech operations glaring by way of the licenses granted to fintech groups.

He said the apex bank is carrying out neighborhood and international consultations in order that it may come out with a harmonised and implementable function.