Nigerian Securities and Exchange Commission Sets Up Fintech Division for Crypto Research – Regulation Bitcoin News
Nigeria’s securities regulator, the Nigerian Securities and Exchange Commission (SEC) has arrange a fintech division “to study crypto investments.” This was revealed by Lamido Yuguda, the director-general of the SEC throughout an interview.
Protecting Crypto Investors
In the interview, Yuguda explains that the research’s findings will assist inform the SEC of the most effective methods to control cryptocurrency ought to the Central Bank of Nigeria (CBN)’s February 6 directive be lifted. However, the director-general didn’t present a time-frame for issuing rules or state when he expects the CBN directive to be lifted.
Meanwhile, in the identical interview, Yuguda explains why his group is keen to give you crypto rules. He defined:
We are taking a look at this market intently to see how we are able to carry out rules that can assist traders shield their funding in blockchain.
As beforehand reported by Bitcoin.com News, Nigeria continues to be a perfect searching floor for crypto scammers. Many unsuspecting traders proceed to lose cash to criminals who additionally seem to make the most of the nation’s lack of legal guidelines regulating cryptocurrencies.
Therefore, with a purpose to shield traders, Nigerian regulators just like the SEC have issued warnings whereas the central financial institution has gone so far as to dam the crypto trade’s entry to the banking ecosystem.
The Real Reason Behind the Desire to Control Crypto
However, some Nigerian crypto fanatics consider that the naira’s persevering with depreciation is the actual motive behind CBN and different regulators’ want to manage the crypto trade. The persevering with shortages of overseas exchange versus the rising demand are blamed for accelerating the naira’s decline towards main currencies. Cryptocurrencies are one other manner people can protect worth exterior of the faltering naira.
In response to this worsening state of affairs, authorities have imposed restrictions each on crypto and non-crypto entities just like the Bureau de Change operators. In addition, the CBN just lately took motion towards six fintech firms after they allegedly violated provisions of their operations licenses.
Yet in distinction to the CBN’s hardline method, Yuguda insists his group needs to “work with fintech firms to boost the marketing of domestic securities to prevent capital flight.” He provides that the “SEC is looking to boost savings through investment schemes, which currently have over $9.7 billion under management split between public and private fund managers.”
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