I truly want to commend the Director General of Nigeria’s Securities and Exchange Commission (SEC), Lamido Yuguda, for his nuanced, analytical and data-driven playbook in the SEC. If you have not noticed, note that the SEC has been more consultative and engaging. They continue to do regulatory work while making sure that the economy is exposed to potential opportunities of the future.
So the news that the SEC has set up a fintech division to study crypto investments and products in order to come up with regulations is a welcome development. Notice that I have no interest in these domino called crypto investments.
Months after the Central Bank of Nigeria (CBN) ordered regulated financial institutions to cease all transactions in cryptocurrencies due to its volatility and lack of regulation, the Nigeria’s Securities and Exchange Commission (SEC) has come up with an idea that will enable it to regulate the new market.
Nigeria’s SEC Director General Lamido Yuguda said on Thursday it has set up a fintech division to study crypto investments and products in order to come up with regulations, Reuters reports.
“We are looking at this market closely to see how we can bring out regulations that will help investors protect their investment in blockchain,” he told Reuters in a virtual interview in Abuja.
According to the report, Yuguda did not provide a time frame for issuing regulations but said the SEC will step in with regulations once crypto is allowed within the Nigerian banking system.
My interest is that Nigeria must allow its young people to participate in a game their peers are playing globally while making sure such will not destroy their futures and the national economy. In other words, we need to regulate and not BAN or SUSPEND.
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Yet, the SEC must elevate its status. I have noticed that the apex bank has banned startups it gave greenlights in some categories. So, if it can make rules and cannot defend the rules before other agencies, it may be better to stop issuing worthless permits!
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I respect the leadership of SEC. Earlier they organized a training to educate people against Ponzi schemes. This is another awesome one.