|-Nigeria SEC collaborates with CBN to Regulate crypto market.|
-Regulators in Nigeria cannot ignore the $1.74T crypto market.
-CBN and SEC also work with other Federal agencies.
-In order to develop a national regulatory approach to cryptos in Nigeria.
According to a report by Premium Times, the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) have partnered to conduct research with a view to find ways for regulating the crypto market.
Nigeria SEC Collaborates with CBN
Collaboration revealed at a virtual lecture conducted by the Association of Capital Market Academics of Nigeria (ACMAN) in Abuja.
Timi Agama is the Head of Department, Registration, Exchanges, Market Infrastructure and Innovation Department of SEC. Moreover, Agama explained that regulators in Nigeria cannot ignore the $1.74 trillion cryptocurrency market.
“Part of the desire of the SEC even in the future is to provide a regulatory framework that will take care of all these challenges…For us at SEC and capital market, it is something to look at, the world cannot be moving forward and we will be static, no.”
Moreover, Agama mentions the SEC sees cryptos as a source for attracting FDI into the country. According to a recent report by the National Bureau of Statistics, 26 states of the federation did not receive any FDI in 2020.
For Kevin Amugo, the CBN’s director of financial policy and regulation, the ban was necessary to give the central bank ample time to address the anonymity of crypto transactions. Blockchain intelligence firms like CipherTrace and Chainalysis have created tools. Even more, that allows for robust cryptocurrency forensic investigation.
Also, crypto exchanges in Nigeria were bonding to Know Your Customer best practices. More so, this included the bank verification number (BVN) authentication.
Amugo also revealed that the CBN and SEC also work with other Federal agencies. In order to develop a national regulatory approach to cryptos in Nigeria. During the event, several stakeholders called regulators to pursue more nuanced laws than bans.
Furthermore, Nigeria’s Bitcoin (BTC) premium is presently the highest in the globe following the CBN ban.