Nigeria’s securities regulator, the Nigerian Securities and Exchange Commission (SEC), has set up a fintech department “to investigate crypto investments.” Lamido Yuguda, director general of the SEC, revealed this in an interview.
Protection of crypto investors
In the interview, Yuguda stated that the results of the study will help inform the SEC of the best ways to regulate cryptocurrency should the Central Bank of Nigeria (CBN) policy of February 6th be repealed. However, the director general has not indicated a timeframe for the enactment of regulations or when he expects the CBN directive to be repealed.
Meanwhile, Yuguda explains in the same interview why his organization is eager to develop crypto regulations. He explained:
We are looking closely at this market to see how we can legislate that will help investors protect their blockchain investments.
As previously reported by Bitcoin.com News, Nigeria continues to be an ideal hunting ground for crypto scammers. Many unsuspecting investors continue to lose money to criminals who also appear to be taking advantage of the country’s lack of laws regulating cryptocurrencies.
To protect investors, Nigerian regulators like the SEC have issued warnings while the central bank has gone so far as to block the crypto industry’s access to the banking ecosystem.
The real reason for wanting to control crypto
However, some Nigerian crypto enthusiasts believe that the ongoing devaluation of the naira is the real reason CBN and other regulators want to control the crypto industry. The persistent shortage of foreign exchange compared to the increasing demand is blamed for the fact that the decline in the naira is accelerated against the main currencies. Cryptocurrencies are another way that individuals can preserve value outside of the fluctuating naira.
In response to this worsening situation, authorities have placed restrictions on both crypto and non-crypto companies such as the operators of the Bureau de Change. In addition, the CBN recently took action against six fintech companies after they allegedly violated their operating license terms.
However, contrary to the tough approach of the CBN, Yuguda insists that his organization “wants to work with fintech firms to encourage the marketing of domestic securities to prevent capital flight.” He added that “the SEC aims to increase savings through investment programs currently under management over $ 9.7 billion, which is spread across public and private fund managers.”
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