Nigeria’s Finance Minister Urges SEC to Strengthen Cryptocurrency Regulations

Nigeria’s Finance Minister, Wale Edun, has advocated for robust cryptocurrency regulations, emphasizing the need for comprehensive oversight as the country introduces its newly inaugurated Securities and Exchange Commission (SEC) board.

Edun’s call for action was reported by local media, highlighting the complexities and rapid pace of the cryptocurrency sector. He stressed that stringent oversight is essential to maintain the integrity of Nigeria’s capital market.

Speaking at the SEC board’s inauguration in Abuja, Edun described cryptocurrencies as a “fast-moving” and “complex” sector, necessitating stringent regulation. The seven-member SEC board, approved by President Bola Tinubu on April 19, 2024, comprises SEC Chairman Mairiga Katuka, Director General Emomotimi Agama, Executive Commissioner of Legal and Enforcement Frana Chukwuogor, and Executive Commissioner of Operations Bola Ajomale.

Since its appointment, the SEC has unveiled plans to update regulations on digital asset issuance, offering platforms, exchange, and custody. This includes the introduction of the Accelerated Regulatory Incubation Programme (ARIP) to aid crypto entities in complying with local requirements.

However, Edun believes these amendments are insufficient. He cautioned that crypto entities could exploit Nigeria’s minimal registration requirements and urged the implementation of robust corporate governance practices. “You must also watch out for regulatory arbitrage,” Edun stated, calling for the commission to swiftly identify and disclose conflicts while adhering to global best practices.

Edun also emphasized the importance of staying informed and proactive, citing developments in digital currency, artificial intelligence (AI), and digital transitions. “Unlike basic industries with settled technologies, the financial sector is rapidly evolving. To provide necessary approvals and guidance, the SEC must stay informed and adaptable,” he noted.

In response, Katuka assured that the SEC is committed to creating a more prosperous and resilient financial ecosystem. He expressed optimism about Nigeria’s future economic outlook, highlighting that current reforms will foster economic growth.

Nigerian regulators are increasingly focused on leveraging emerging technologies to bolster the economy. On July 4, the National Information Technology Development Agency announced plans to establish research centers dedicated to key technologies such as Blockchain and AI.

These developments come amid Nigeria’s legal confrontation with crypto exchange Binance and its executive Tigran Gambaryan, detained by the Economic and Financial Crimes Commission (EFCC) since February. Despite allegations of baseless charges from US lawmakers, Nigeria has defended its legal processes.

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