Nigerian SEC establishes fintech unit to research Bitcoin (BTC) and other cryptocurrencies

Sat 04 Sep 2021 ▪ 15h18 ▪ 3 min read — by Siobhan Jones

Eight months ago, Nigeria’s central bank banned financial institutions from dealing with cryptocurrency companies and investors. Just the other day, the Securities and Exchange Commission (SEC Nigeria) set up a fintech unit to lay down the rules for the crypto industry. To do so, it will research everything related to Bitcoin and other digital cryptocurrencies.

Developing regulations to protect investors

According to CryptoPotato, SEC Nigeria announced in an official statement that the main purpose of the new division is to study digital currencies, investments, and other data related to the crypto industry. These are necessary measures to protect investors, the SEC said.

“We are looking at this market closely to see how we can bring out regulations that will help investors protect their investment in blockchain,” said Lamido Yuguda, SEC Nigeria’s Director General.

Yuguda added that the Securities and Exchange Commission treats all virtual assets as securities. Research and development of the new guidelines will help regulate this issue.

Emomotimi Agama, the Head of Registration, Exchanges, Market Infrastructure, and Innovation at SEC Nigeria said that the new unit intends to involve other institutions in the cooperation. They have already been collaborating with Cambridge Centre for Alternative Finance, the World Bank, and other organisations. Their aim is to establish a Nigerian cryptocurrency ecosystem and to develop basic principles for its functioning.

Conducting cryptocurrency transactions despite the ban

Last year, the Central Bank of Nigeria banned financial institutions from making cryptocurrency payments, servicing investors, and digital currency exchanges. Despite this, transactions in Nigeria are still taking place, and in April, the country even took the lead in the peer-to-peer (P2P) market in Africa.

After the number of increased cryptocurrency transactions, the Central Bank of Nigeria announced that it was going to launch a digital Naira in October this year. Let’s see where the crypto market in Nigeria moves.

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Siobhan Jones

Hi everyone, thanks for reading my article! Join me on my journey to crypto enlightenment, we can always learn something new from each other – no one person has all the knowledge in the world.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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