Discussions are ongoing between the Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN) as regards improved understanding and regulation of Nigeria’s cryptocurrency market.
This was disclosed on Thursday as SEC quoted its DG, Mr. Lamido Yuguda, who announced that the commission issued a circular to the effect that only accredited persons would continue operations in the capital market.
The commission said that it would keep engaging players within the fintech value-chain to support them to operate legally and legitimately in order to guarantee that only safe products and services are delivered to investors whilst maintaining innovations.
Mr. Yuguda was quoted as saying, “It became imperative for the commission to issue this notice for the protection of investors and to preserve the sanctity of the Nigerian capital market as only registered capital market operators are permitted to intermediate in the Nigerian capital market and only through approved channels.” This, he disclosed while briefing the press at the end of the Capital Market Committee meeting.
He continued, “We do not want any unregulated entity to participate in the market because if there are issues, it becomes very difficult to resolve. I therefore encourage fintech firms to approach the commission for due registration and desist from operating illegally.
“In the same vein, registered CMOs are advised to refrain from providing any form of support to unregistered entities operating unlawfully within our market, as such action would not be condoned.
“Furthermore, we urge CMOs to improve on their level of compliance, timeliness and correctness of disclosures and other filings made to the commission,” he concluded.
Azuka Edokobi is a Writer and Entrepreneur