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Nigeria’s SEC Forms Dedicated Fintech Division to Deep-dive Into Crypto

By Warren Hayes | September 5, 2021
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450,000 Coinmama Accounts and Passwords Stolen in a Major Crypto Security Breach

Nigeria’s Securities and Exchange Commission (SEC) is reportedly working towards a goal of rolling out regulatory frameworks for the crypto sector and introducing appropriate safeguarding for investors. 

Specifically, this year, financial establishments across the nation have reportedly been experiencing a wave of authoritative scrutiny, starting with the prohibition in February, applied to lenders that provide services to crypto exchanges by its central bank. 

Per details outlined in a Sept. 2 report, the SEC has reportedly formed a focused fintech division, aimed at achieving the primary goal of deep-diving into crypto and blockchain investments and products – harnessing knowledge applicable for a future crypto regulatory framework.

Director-General Lamido Yuguda reportedly revealed that the authoritative body is placing a close scope on this market, in an effort to figure out the appropriate measures for “bringing out regulations that will help investors protect their investment in blockchain.” 

Nigeria’s SEC – which recognizes all crypto assets ”are securities, unless proven otherwise” – will only have the freedom to roll out proper regulation on the condition that the crypto integration into the nation’s banking infrastructure is finalized. 

The agency further plans to collaborate with fintech entities to reinforce the domestic market for securities, in hopes of dissuading capital flight, which keeps on generating threats to numerous industries.

The move of removing crypto from banking channels has reportedly not caused any setbacks to the enthusiasm for the asset class. Contradictorily, throughout a year witnessing political and economic crises, including social and economic repression and rampant inflation, crypto adoption has experienced healthy, gradual growth.

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