Nigeria’s Finance Minister, Wale Edun, has urged the Securities and Exchange Commission (SEC) to establish regulations for cryptocurrencies following the inauguration of its new board. Local media reported Edun emphasizing the need for the SEC to tackle the intricate aspects of cryptocurrency regulation.
Edun described cryptocurrencies as a rapidly evolving and complex sector, emphasizing the importance of rigorous oversight to safeguard the integrity of Nigeria’s capital market.
During the inauguration of the board in Abuja, Finance Minister Wale Edun expressed his views. The newly appointed seven-member SEC board, approved by President Bola Tinubu on April 19, 2024, includes SEC Chairman Mairiga Katuka, Director General Emomotimi Agama, Executive Commissioner of Legal and Enforcement Frana Chukwuogor, and Executive Commissioner of Operations Bola Ajomale.
Since their appointment, the SEC has outlined plans to update regulations concerning digital asset issuance, offering platforms, exchanges, and custody. This includes launching the Accelerated Regulatory Incubation Programme (ARIP), aimed at assisting crypto entities in meeting local compliance requirements.
Despite these initiatives, Edun believes more is needed. He cautioned that crypto entities might exploit Nigeria’s minimal registration standards and emphasized the importance of implementing robust corporate governance practices.
Edun also highlighted the necessity for the SEC to remain vigilant against regulatory arbitrage, urging the commission to swiftly identify and address conflicts while adhering to global best practices.
Further, he emphasized the importance of staying informed and proactive, noting advancements in digital currency, artificial intelligence (AI), and broader digital transformations.
“In contrast to traditional industries with established technologies, the financial sector is evolving rapidly […]. To provide essential approvals and guidance, the SEC must remain informed and adaptable.”
In response, Katuka assured the minister that the SEC is committed to fostering a robust and resilient financial ecosystem. He expressed confidence in Nigeria’s economic prospects under the current administration’s reforms, anticipating enhanced economic growth.
Nigerian regulators have been exploring opportunities presented by emerging technologies to bolster the economy. On July 4, the National Information Technology Development Agency in Nigeria announced plans to establish research centers focused on pivotal technologies such as Blockchain and AI.
These developments unfold amid Nigeria’s legal dispute involving crypto exchange Binance and its executive Tigran Gambaryan, who has been in detention under the Economic and Financial Crimes Commission (EFCC) since February.
Despite assertions from US lawmakers regarding unsubstantiated charges, Nigeria has upheld its commitment to due process.
