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Business News of Tuesday, 23 February 2021

Source: Punch

SEC, CBN, others’ll develop regulatory framework for crypto assets - Yuguda

The Securities and Exchange Commission, the apex regulator of the nation’s capital market, has said it will collaborate with the Central Bank of Nigeria and other critical stakeholders to create a regulatory framework for cryptocurrencies and other digital assets.

The Director-General, SEC, Mr Lamido Yuguda, said this at the joint session of the Senate Committee on Banking, Insurance and other Financial Institutions, Capital Market and ICT and Cyber Crime in Abuja, on Tuesday.

The Central Bank of Nigeria had earlier this month ordered banks and other financial institutions in the country to close all cryptocurrency accounts.

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A statement from SEC quoted Yuguda as saying that the commission was committed to enhancing financial inclusion in the country through technology and recognised the disruption of fintech in the financial industry.

He said the commission would advance efforts towards developing a comprehensive regulatory framework that ensures that operators in the crypto asset space conduct their activities in a manner that protects investors and maintains financial system stability.

He said, “We believe that FinTech would not only bring about efficiency to the capital market but would also serve as a veritable tool for advancing Nigeria’s Financial Inclusion agenda.

“However, there is a need to develop an appropriate regulatory framework to ensure the safety of innovation to investors and preserve market integrity.”

The SEC boss said to develop an appropriate regulatory framework, regulators needed to understand the crypto asset space to be better positioned to address identified risks.

“The SEC will continue to monitor developments in the digital asset space and further engage/collaborate with all critical stakeholders, including the CBN, to create a regulatory structure that enhances economic development while promoting a safe, innovative and transparent capital market,” he said.

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