The Fintech Roadmap Implementation Committee of SEC Nigeria has officially been inaugurated.
Recall that late in 2019, the Nigeria Capital Markets Authority formally received and accepted the Report of the Fintech Roadmap Committee and approved the setting up of the recommended implementation committee to drive the actualization of the reports roadmap.
The report provided a detailed on crypto and virtual assets classification, regulation, and standards. Take a look at the recommendations here.
Cryptocurrencies, Virtual Financial Assets (VFAs) and ICOs recommended areas of implementation for the first quarter of 2020 includes:
- Decide on its preferred classification of crypto-currencies (either as Commodities, Securities or Currency)
- Develop a framework for the regulation of VFAs and VFA Exchanges
- Develop a framework for the regulation of equity-based crowdfunding
- Issue guidelines and standards for White Papers and ICOs
- AML and KYC Procedures – Develop a framework for KYC and due diligence for crypto-currencies, VFAs, tokens and ICOs
- Enforce adoption of best practice in Cyber Security and Information Governance
- Define clear taxonomies of tokens based on their nature, characteristics and economic realities as their determining factors. Please recall also that the VFA Working Group that was also set up by SEC Nigeria in 2019 has also made their preliminary report presentation to the Capital Market Committee and will soon make the final report available for public input.
The inaugurated Fintech Innovation Unit at SEC Nigeria offices will now be responsible for managing investor relationships in the following areas:
- Engage and provide regulatory clarification to new entrants into the space
- Facilitate regulator – innovator – market engagements
- Coordinate the communication and dissemination of relevant industry information
- Provide support and advisory services to the industry.
- Other areas that will be driven by the committee are Accelerating investments, Directory Services and Capacity Building
As previously mentioned, the Fintech Roadmap Working Group Committee will develop a supportive and regulatory framework for blockchain and virtual financial assets that is aimed at effective investor protection, financial market integrity, and financial stability.
In an exclusive, according to Chimezie Chuta, Founder & Coordinator, Blockchain Nigeria User Group (BNUG), who has been part of both the Fintech Roadmap Committee and the VFA Working Group and also the Implementation committee:
“The most interesting aspect of this whole thing is the decision by SEC Nigeria to setup an agile Fintech Innovation Unit at the SEC Nigeria office to, among other things, manage investor relationships.
For me, this is the first time an agency of government in my lifetime has acted proactively for the interest of innovation in this my country Nigeria. SEC Nigeria deserves all the accolades it can get for doing this.”
Various sub-committees were also created to make the work easier for the committee.
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