SEC unveils frameworks to mitigate crypto risks

Nigeria’s Securities and Exchange Commission (SEC) has declared the country a major player in the global cryptocurrency market, particularly in peer-to-peer transactions.

Emomotimi Agama, SEC’s Director-General, made this announcement at the 2024 International Organisation of Securities Commissions (IOSCO) World Investor Week (WIW), on Monday.

Agama emphasized the volatility of the market, stressing the importance of investor protection. “Our frameworks balance the need to encourage innovation within a safe, regulated environment whilst maintaining investor protection,” he said.

To address concerns such as fraud, money laundering, and market manipulation, the SEC has implemented frameworks for regulating virtual asset service providers (VASPs).

Read Also: Elon Musk offers $47 incentive to U.S. voters for petition signatures

The SEC has also developed a regulatory incubation program to test and approve new technologies and digital assets for public use. Additionally, an accelerated regulatory incubation program aims to encourage non-registered crypto operators to seek regulatory oversight.

Key Initiatives:

– Regulatory Incubation Program: To test and approve new technologies and digital assets for public use.
– Accelerated Regulatory Incubation Program: To encourage non-registered crypto operators to seek regulatory oversight.
– Increased Enforcement: Against illegal crypto platforms, ponzi schemes, and market abuse.

Agama highlighted sustainable finance as a pressing issue for Nigeria, citing environmental, social, and governance (ESG) factors becoming increasingly important in investment decisions. He also noted the growing participation of retail investors in the capital market.

“Investor education empowers individuals to make informed decisions while protecting themselves from fraud, Ponzi schemes, misinformation, and excessive risk,” Agama said. “World Investor Week provides a platform for us to reinforce this commitment and build a robust, investor-friendly ecosystem.”

The SEC’s efforts come as Nigeria’s cryptocurrency market is projected to reach $52.5 million by 2028, with a current value of over $400 million. The country’s crypto transaction volume soared to $56.7 billion between July 2022 and June 2023, marking a nine percent year-over-year growth.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now