In a bid to safeguard the integrity of the capital market and shield investors from illegal trading activities, the Securities and Exchange Commission (SEC) has vowed to take decisive action against illicit practices within the virtual assets space.
The move comes amidst growing concerns over the disruptive impact of cryptocurrency speculation on the Nigerian economy, particularly its influence on the stability of the national currency.
Speaking during a virtual meeting with the Blockchain Industry Coordinating Committee of Nigeria (BICCoN), SEC’s Acting Director General, Dr. Emomotimi Agama, emphasized the necessity of tough decisions to restore economic stability.
The Nigerian crypto market, estimated at over $57 billion, has faced increased scrutiny from regulatory authorities following a series of measures aimed at curbing its adverse effects on the foreign exchange market. Recent actions include the blocking of crypto users from accessing major platforms and proposed hikes in registration fees.
Agama reiterated SEC’s commitment to leveraging its regulatory powers to address threats to the national interest, stressing the importance of collaboration in fostering a transparent and globally respected capital market environment.
Highlighting concerns over the manipulation of the naira’s exchange rate by crypto peer-to-peer (P2P) traders, Agama advocated for the delisting of the naira from P2P platforms to mitigate illicit activities. He urged participants in the crypto space to cooperate in identifying and deterring market disruptors.
Furthermore, Agama outlined SEC’s efforts to establish comprehensive regulatory guidelines for digital assets, encompassing various activities within the cryptocurrency ecosystem. These measures aim to promote innovation while safeguarding national economic interests.
The initiative garnered support from industry stakeholders, with Dr. Babatunde Oghenobruche Obrimah, Chairman of the Fintech Association of Nigeria, applauding SEC’s proactive approach and pledging collaboration for its success.
As Nigeria navigates the complexities of cryptocurrency regulation, the collaboration between regulatory authorities and industry players remains crucial in fostering a conducive environment for sustainable economic growth.
