Nigeria has frequently been in the news in recent times. This time, the country’s Security and Exchange Commission is looking inward on cryptocurrency as it considers establishing a fintech unit that would study the sector.
A September 2 report revealed that the Nigerian SEC had established a fintech unit that would be dedicated and responsible for examining crypto and blockchain-related products and investments. It is in the interest of the regulatory body to marshal every knowledge gathered from the study to design a crypto regulatory framework.
SEC Director-General, Lamido Yuguda, explained to journalists that the agency is “looking at this market closely to see how we can bring out regulations that will help investors protect their investment in blockchain.”
This may be difficult, especially for Nigeria SEC, which had previously seen all cryptocurrencies as securities. However, it would be possible to design a regulatory framework if the country allows crypto in its banking system. In another report, SEC is also working to strengthen the domestic market for securities to dissuade capital flight, which continues to beset multiple sectors.
Earlier in the year, the Nigeria central bank ordered all commercial banks to stop facilitating transactions to crypto exchanges. This has not affected crypto enthusiasm amongst people, despite the several challenges facing the country at present.