CBN collaborates SEC to regulate Cryptocurrency

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CBN collaborates SEC to regulate Cryptocurrency
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Two major regulators in the financial market, the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) have agreed to collaborate and conduct research with a view to finding ways of regulating the Cryptocurrency market.

They said this at a virtual lecture organised by the Association of Capital Market Academics of Nigeria (ACMAN) in Abuja Sunday, February 21.

Head of Department, Registration, Exchanges, Market Infrastructure and Innovation Department of SEC, Mr Timi Agama, described the cryptocurrency market as an air that could currently not be caged or regulated.

He noted that cryptocurrency was a market of about two trillion dollars which could not be ignored.

Agama said that although SEC or the capital market would not accommodate or encourage any fraudulent practices that allowed for money laundering, cryptocurrency was a market to look into.

“There is a lot of investment move into the cryptocurrency market and the tendency is that it will reduce the amount of investments in the stock market. Part of the desire of the SEC even in the future is to provide a regulatory framework that will take care of all these challenges that we have seen internationally and the entire world is grappling with in terms of cryptocurrency and digital assets.

“For us at SEC and capital market, it is something to look at, the world cannot be moving forward and we will be static, no. It is important for us to review, understand, appreciate and introduce regulations that will guide the movement of the market in this direction.

It is our desire that we do more work, collaborate as regulators and analyse to make sure that we provide a level playing field where Nigerians, international investors, and whoever is interested in this space will be comfortable and happy.

I hope that in doing that, we are going to be able to drive foreign portfolio investment, Foreign Direct Investment (FDI) into this country and build our capital market,’’ he said.

Corroborating the development, Director, Financial Policy and Regulation Department of the CBN, Dr Kevin Amugo, said the ban was to enable it to work together with stakeholders in addressing the anonymity of the technology.

Amugo said the CBN would continue to develop policies that would optimise the opportunities of the financial technology industry and promote the economic landscape of the country.

He said that consumer protection was a huge challenge in the cryptocurrency market as it was speculative and no economic fundamentals drove its price.

“The committee on cryptocurrency headed by the National Security Adviser and members are EFCC, NFIU, SEC, NAICOM, and all regulators to strategize and come up with a national position, not a monetary policy position. We have issued our initial draft but COVID-19 impeded our efforts to conclude our actions.

“Because of interests crypto has regenerated, I think it is high time we reconvened and ensure that we take a national position so that what is issued is a national position, not a CBN’s or SEC’s position.

“We are not stifling fin-tech operations, CBN has been proactive in granting licenses to fin-tech operators.

“The way forward for us will be a continuous engagement, ongoing consultations, and academic research,’’ he said.

 

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