Nigerian Securities and Exchange Commission Establishes Fintech Division for Crypto Research – Bitcoin Regulation News

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The Nigerian securities regulator, the Nigerian Securities and Exchange Commission (SEC), has set up a fintech division “to study crypto investments.” This is what Lamido Yuguda, the chief executive of the SEC, revealed in an interview.

Protect crypto investors

In the interview, Yuguda explains that the results of the study will help inform the SEC about the best ways to regulate cryptocurrency if the February 6 directive from the Central Bank of Nigeria (CBN) is lifted. However, the CEO did not provide a deadline for issuing regulations or indicate when he expects the CBN directive to be lifted.

Meanwhile, in the same interview, Yuguda explains why his organization is eager to come up with crypto regulations. He explained:

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.

As previously reported by Bitcoin.com News, Nigeria continues to be an ideal hunting ground for crypto scammers. Many unsuspecting investors continue to lose money to criminals who also appear to take advantage of the country’s lack of cryptocurrency laws.

Therefore, in order to protect investors, Nigerian regulators like the SEC have issued warnings as the central bank has gone so far as to block the crypto industry’s access to the banking ecosystem.

The real reason behind the desire to control crypto

However, some Nigerian crypto enthusiasts believe that the continued depreciation of the naira is the real reason for CBN and other regulators’ desire to control the crypto industry. Persistent foreign exchange shortages relative to growing demand are responsible for accelerating the decline of the naira against major currencies. Cryptocurrencies are another way for individuals to preserve value outside of the failing naira.

In response to this worsening situation, authorities have imposed restrictions on crypto and non-crypto entities such as Bureau de Change operators. In addition, the CBN recently took action against six FinTech companies after they allegedly violated the terms of their operating licenses.

Yet, unlike the CBN’s hard-line approach, Yuguda insists his organization wants “to work with fintech companies to stimulate the commercialization of domestic securities to prevent capital flight.” He adds that the “SEC seeks to increase savings through investment programs, which currently manage more than $ 9.7 billion under management, divided between public and private fund managers.”

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