Nigerian SEC has created fintech division to study crypto investments

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By Chijioke Ohuocha

ABUJA, Sept. 2 (Reuters) – The Nigerian securities regulator has set up a fintech division to study crypto investments and products in order to develop regulations, the head of the Securities and Exchange Commission (SEC) said on Thursday. from the country.

“We are taking a close look at this market to see how we can put regulations in place that will help investors protect their blockchain investment,” SEC chief executive Lamido Yuguda told Reuters in a virtual interview. in Abuja.

He did not provide a timeline for the issuance of regulations, but said the SEC would intervene with the regulations once crypto is allowed into the Nigerian banking system. The SEC has sought to regulate crypto on the grounds that it is considered a securities transaction.

Nigeria is one of the largest markets for crypto trading, but the central bank banned lenders in February from entering into or facilitating transactions in cryptocurrencies.

The use of bitcoin, the original and most important cryptocurrency, has exploded in Nigeria in recent years, driven by small business payments and the weakening of the naira currency, making it difficult to obtain US dollars. necessary to import goods or services.

Yuguda said the commission was in talks with the central bank, part of which led to the launch of the country’s digital currency, e-naira.

The commission seeks to work with financial technology companies to stimulate the marketing of domestic securities to prevent capital flight. The central bank this month blocked the accounts of six companies for allegedly obtaining funds from illegal exchange traders to buy foreign securities and cryptocurrencies.

He said the SEC was seeking to increase savings through investment programs, which currently manage over 4 trillion naira ($ 9.7 billion) under management, split between public and private fund managers. . Yuguda said the regulator has asked private managers to put in place custodial agreements to protect investors.

($ 1 = 411.00 naira)

(Reporting by Chijioke Ohuocha; editing by Steve Orlofsky)

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