Sep 5, 2021 07:05 UTC
Sep 5, 2021 at 07:05 UTC
Nigerian Securities and Exchange Commission Established Fintech Division for Crypto Analysis
Nigeria’s securities regulator, the Nigerian Securities and Exchange Commission (SEC) has established a fintech division “to study crypto investments.” This was disclosed by Lamido Yuguda, the director-general of the SEC throughout AN interview.
Protecting Crypto Investors
In the interview, Yuguda explains that the study’s findings can inform the SEC of the most effective ways that to manage cryptocurrency ought to the Central Bank of Nigeria (CBN)’s February 6 directive be raised. However, the director-general didn’t offer a timeframe for issue rules or state once he expects the CBN directive to be raised.
Meanwhile, within the same interview, Yuguda explains why his organization is raring to come up with crypto rules. He explained:
“We are looking at this market closely to examine however we are able to bring out rules that may facilitate investors protecting their investment in blockchain.”
As antecedently reported by Bitcoin.com News, Nigeria continues to be a perfect looking ground for crypto scammers. Several unsuspecting investors still lose cash to criminals who conjointly seem to require advantage of the country’s lack of laws regulating cryptocurrencies.
Therefore, so as to shield investors, Nigerian regulators just like the SEC have issued warnings whereas the bano has gone away to block the crypto industry’s access to the banking system.
The Real Reason Behind the need to manage Crypto
However, some Nigerian crypto enthusiasts believe that the naira’s continued depreciation is the real reason behind CBN and different regulators’ need to manage the crypto trade. The continued shortages of exchange versus the rising demand are everlasting for fast the naira’s decline against major currencies. Cryptocurrencies are different ways people will preserve prices outside of the faltering naira.
In response to the present worsening scenario, authorities have obligatory restrictions each on crypto and non-crypto entities just like the Bureau American state change operators. Additionally, the CBN recently took action against 6 fintech corporations when they allegedly desecrated provisions of their operations licenses.
Yet in distinction to the CBN’s hard-line approach, Yuguda insists his organization desires to “work with fintech corporations to spice up the promotion of domestic securities to forestall capital flight.” He adds that the “SEC is wanting to spice up savings through investment schemes that presently have over $9.7 billion beneath management split between public and personal fund managers.”