Sunday, July 21, 2024

Nigerian minister urges SEC to tackle crypto regulation challenges



The Nigerian Minister of Finance and Coordinating Minister of the Financial system, Wale Edun, has referred to as on the newly inaugurated Securities and Change Fee (SEC) board to deal with the complexities of cryptocurrency regulation.

In line with native media, Edun emphasized the necessity to guarantee stringent oversight, particularly in fast-moving and sophisticated areas akin to cryptocurrencies, to take care of market integrity in Nigeria’s capital market throughout the board’s inauguration in Abuja.

Minimal registration necessities

Edun warned that corporations would possibly exploit minimal registration necessities to falsely declare they’re licensed, undermining market integrity. Highlighting the potential for regulatory arbitrage, he urged the SEC to implement top-notch company governance practices, swiftly establish and disclose conflicts and cling to international finest practices.

The minister additionally inspired the newly inaugurated SEC board members to undertake progressive methods to control the nation’s capital market successfully. He pressured the significance of staying knowledgeable and proactive amid fast developments in synthetic intelligence, digital foreign money and total digital transitions.

“In contrast to primary industries with settled applied sciences, the monetary sector is quickly evolving with improvements in fintech, AI and crypto. To supply obligatory approvals and steerage, the SEC should keep knowledgeable and adaptable.”

SEC pledges innovation and progress

In response, the Chairman of the SEC board, Mairiga Katuka, assured the minister that the board would leverage its collective experience, innovation and keenness to drive progress.

Katuka expressed optimism about Nigeria’s future financial outlook, citing reforms by the present administration which might be fostering financial progress.

Associated: Nigerian SEC mandates local offices for crypto firms

The SEC chairman emphasised that the board would contribute to a extra affluent and resilient monetary ecosystem with diligence, integrity and a shared sense of objective.

On April 19, 2024, Nigerian President Bola Tinubu approved the appointment of seven individuals to the SEC board. They included Katuka, Emomotimi Agama (director-general), Frana Chukwuogor (government commissioner of authorized and enforcement) and Bola Ajomale (government commissioner of operations).

Following the appointments, the SEC amended its rules on digital asset issuance, providing platforms, trade and custody, outlining its plans to replace these important rules. The modification course of is designed to boost the regulatory setting, making it extra complete and attentive to the complexities of digital asset markets.

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