According to the Nigerian Securities Exchange Commission (SEC), many Nigerian youths are embracing cryptocurrencies because of the secretive nature of the transactions.
“Secrecy of crypto usage is what is driving its adoption by the youth. Some people don’t have bank accounts but they have a crypto wallet. Crypto is like air, can you cage it? No. What you can do is to build a risk management around it,” said Director-General of the Commission, Dr Emomotimi Agama.
According to the official, the local cryptocurrency market is valued at over $400 million with 33.4% of Nigerians using or owning cryptocurrencies noting that the commission would continue to educate investors on the risks associated with digital assets to be able to make wise investment decisions.
Agama, who spoke at the first Annual Conference of the Association of Capital Market Academics of Nigeria (ACMAN) on June 28 2024 in Abuja, Nigeria, also reiterated that the SEC is the body with the mandate over the regulation of cryptocurrencies and other digital assets.
“The lack of a comprehensive regulatory framework has created uncertainty, which can deter both investors and innovators. Cybersecurity threats, including hacking and fraud, pose significant risks.
A substantial portion of the population lacks adequate financial literacy, making them vulnerable to scams and risky investments,” he explained.
The comments come only a few days after the commission issued a notice to operators that it was amending its rules on Digital Asset Issuance, Offering Platforms, Exchange and Custody. According to him, the regulatory landscape for cryptocurrency is not yet firm even in the United States.
🇳🇬REGULATION | Nigeria SEC Issues a Notice for Onboarding VASPs in 30 Days Due to ‘Current Realities’
Following the 30-day-period, the Commission indicated that it would commence enforcement action against any operating VASP that fails to comply with the directives.… pic.twitter.com/ThvMC4MwFQ
— BitKE (@BitcoinKE) June 22, 2024
Still speaking at the same event, the SEC chairman, Mr. Mairiga Katuka, said the introduction of crypto presents an advantage for the markets, urging all to chart a course forward for Nigeria with its vibrant financial markets.
“Together we can drive the development of a vibrant resilient capital market in line with President Bola Tinubu’s dream of making Nigeria a prime investor destination.”
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