The Nigeria Securities and Exchange Commission said it can not afford to dismiss the $1.74 trillion crypto market.
Nigeria SEC sees Crypto as channel for attracting foreign direct investment
The Nigerian Securities and Exchange Commission recently suspended its proposed regulations on cryptocurrencies after the central bank banned them and clarified its position on cryptocurrencies. According to a Premium Times report, the SEC and the Central Bank of Nigeria will work together to develop a specific legal framework for Nigeria’s cryptocurrency.
The commission’s registration, exchanges, market infrastructure, and innovation head, Timi Agama said Nigerian regulators could not ignore this $1.74 trillion crypto market.
The Nigerian Capital Market Scholars Association said in a speech at a virtual conference in the capital Abuja:
“Part of the desire of the SEC even in the future is to provide a regulatory framework that will take care of all these challenges that we have seen internationally and the entire world is grappling with in terms of cryptocurrency and digital assets. For us at SEC and capital market, it is something to look at, the world cannot be moving forward, and we will be static, no.”
According to Agama, the SEC sees the cryptocurrency as a channel to attract much-needed foreign direct investment or foreign direct investment. According to the latest report by the National Statistics Office, 26 of the 36 federal states have no foreign direct investment in 2020.
For Kevin Amugo, director of financial policies and regulations at CBN, the ban is necessary to give the central bank enough time to clear the anonymity of crypto transactions.
Most crypto transactions can not be traced, but Blockchain intelligence companies like CipherTrace and Chainalysis have developed tools that can be used to conduct powerful forensic investigations into cryptocurrency.
Nigerian Regulators Working on Crypto Regulatory Framework
Additionally, the Nigerian cryptocurrency exchanges insist on using best practices that you know your customers by including bank verification codes or BVN certification.
During the ACMAN presentation, Amugo announced that CBN and the SEC are working with other federal agencies to develop a national regulatory approach to Nigeria’s cryptocurrency. During the event, some stakeholders urged regulators to implement more nuanced laws rather than banning them outright.
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