Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has called on the newly appointed board members of the Securities and Exchange Commission (SEC) to address the complexities of cryptocurrency regulation in the country.
According to a report from local media, Punch, Edun emphasized the importance of robust oversight in rapidly evolving sectors like cryptocurrencies to maintain market integrity in Nigeria’s capital market during the board’s inauguration in Abuja on Tuesday, July 9, 2024.
Edun warned against the potential abuse of minimal registration requirements by companies falsely claiming licensing, which could undermine market credibility.
“You must also watch out for regulatory arbitrage, where a company with a portfolio of huge, sophisticated transactions now comes and takes the lowest level of registration that they can just so they can say they are licensed and regulated,”
he reportedly stated.
The minister encouraged the board to adopt innovative regulatory approaches to effectively oversee Nigeria’s capital market amid advancements in artificial intelligence, digital currencies, and broader digital transformations. He also stressed the need for stringent corporate governance standards, prompt disclosure of conflicts, and adherence to international best practices.
“The financial sector evolves rapidly with advancements in fintech, AI, and crypto, unlike traditional industries with established technologies,”
remarked Edun.
“To provide necessary approvals and guidance, the SEC must remain agile and well-informed.”
In response, SEC Chairman Mairiga Katuka assured the minister of the board’s commitment to leveraging collective expertise, innovation, and dedication to drive growth. Katuka expressed optimism about Nigeria’s economic future, citing ongoing reforms aimed at fostering economic expansion.
This development follows Nigerian President Bola Tinubu’s recent approval of seven new appointments to the SEC board, which included Mairiga Katuka as the Chairman and Emomotimi Agama as the Director-General of the regulatory body.
In the wake of these appointments, the SEC announced that it has revised rules on digital asset issuance, offering platforms, exchange, and custody to enhance the regulatory framework and better address the complexities of the digital asset market.
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