The Securities and Exchange Commission (SEC) says it is working with the Central Bank of Nigeria (CBN) for better understanding and regulation of cryptocurencies in the country.
The Director-General, SEC, Lamido Yuguda, said this at the 2021 first post-Capital Market Committee (CMC) virtual news conference.
Yuguda said that the commission was in discussion with the CBN for better understanding and regulation of the crytoassets market.
He said that the commission had suspended the implementation of crytoassets guidelines due to lack of access to Nigerian bank accounts.
“We are in discussion with CBN for both understanding and better regulating of this market.
“We will be able to come back to you later to inform you of the outcome of these engagements.
“Remember that nobody operates in the Nigerian capital market if that person does not have access to a Nigerian bank account,” he said.
Yuguda, however, said that SEC remained very supportive of Fintechs and had invested so much in developing a framework to support their operations.
“Let me say that the SEC remains very supportive of fintechs.
“We have invested so much in developing a framework for supporting fintechs in the various areas and fintechs are acting in areas of crowd funding, investment advice and cryptocurrencies and the like,” he said.
Yuguda said that the market had been disrupted by the apex bank prohibition on access to Nigerian bank accounts by crypto exchange.
“In all other areas, nothing has changed, but in the area of crypto assets, you know that with the recent prohibition by the CBN on access to Nigerian bank accounts by crypto exchanges, that market has been disrupted.
According to him, the commission recognises the impact of FinTechs on capital market activities.
He assured the public that SEC would remain accommodative of this development.
“We shall continue to engage players and support them to operate lawfully.
“Our aim is to ensure the delivery of safe products and services without stifling innovation,” Yuguda said.
He, therefore, encouraged FinTech firms to approach the Commission for due registration and desist from operating illegally.