Nigeria’s SEC has come out to assure Nigerians that they are working on the creation of a regulatory framework for digital assets transactions in the country. The recent ban on crypto-related transactions by the Central Bank of Nigeria has seen the commission suspend its plans to regulate the crypto market in Nigeria.
A report by Premium Times claims that the Central Bank of Nigeria is working hand in hand with the SEC on a well-oiled structure for the regulation of the Nigerian Crypto market. The crypto market is currently $1.74 trillion, and this is hard for regulators to ignore, says Timi Agama.
Something Had to be Done About the Crypto Market’s Long Leash
The Association of Capital Market Academics hosted a virtual conference on Sunday on which Tim Agama was invited to speak in. He is currently the SEC’s head of registration, exchanges, and innovation. He said that the SEC desired that a regulatory framework is created that would cater to the issues that all regulatory bodies have been facing globally because of the boom in the Crypto market. He remarked that the commission needed to do something about this quickly as there is a need to keep pace with the financial world globally.
Agama also stated that cryptocurrency is seen as an avenue to attract FDI into the country, so it would be a loss to the nation to out-rightly ban it. However, recent statistics have shown that only 10 states in the nation had been receiving foreign direct investments dating back to 2020. This is not all too disheartening as not everyone in the nation understands how digital assets work.
The Ban on the Crypto Market was a Necessity
The director of financial policy and regulation of the Central Bank of Nigeria, Mr. Kevin Amugo, expressed his mindset that the ban was a necessary step toward regulation of the crypto market. Financial regulators all over the world are having issues with the regulation of Cryptocurrency, so this may take Nigeria a long time to find a suitable regulatory framework. Hence, the ban was enacted on the market.