Nigerian SEC(Securities and Exchange Commission) sets up the Fintech sector especially for researching cryptocurrencies. The main ambition of the research is to study different types of investments over this new asset. During an Interview, Lamido Yugudu (Director general of SEC) lets us know about the research. So, let’s take a look.
Why Nigerian SEC sets Fintech sector?
Yugudu explains that why the research is important in the long run in an interview. He says that the outcome of the research will provide the best possible ways to regulate cryptocurrency. Therefore, informing the SEC about the findings might help the director-general lift the Central Bank of Nigeria’s Feb 6 directive. The February 6 directive says that the Central Bank of Nigeria (CBN) orders banks to close accounts of crypto clients. Although, the director-general did not put any deadline on the lifting of CBN’s directive.
Yugudu further explains why the organization is curious about coming up with crypto regulations in the same interview. The SEC wants to look closely at the market to determine how they can bring out regulations to safeguard investors investment in blockchain.
Nigerian investors frequently face threats from cryptocurrency scammers. Many investors continue losing money to those fraudulent activities by the frauds. The lack of proper regulation and law in the country is an advantage for these crypto hackers. For now, the Nigerian regulators of SEC has led out warnings. In comparison, the CBN has gone far to block several crypto investors accounts to avoid such circumstances that may compromise the bank’s security.
Why do they need to control crypto investments?
Some find that the research will be helpful for crypto investors, whereas some still fear the scams. Some crypto fanatics also think that Naira’s (currency of Nigeria) depreciation is one of the real reasons why the SEC wants to put restrictions on crypto investments. After digging a little deeper, some Nigerian crypto enthusiasts say that there is a shortage of foreign exchange in the country. And it’s fighting against the rising demand for foreign exchange. And that is the sole reason behind Naira’s decline against some major foreign currencies.
As the reason seems quite clear, authorities are restricting investment in both crypto and non-crypto entities, and one of them is Bureau de Change operators. Due to the restrictions, CBN went to take action against six major fintech firms because allegedly they were violating the regulations.
Yugudu still insists SEC wants to work with the Fintech companies to boost marketing of domestic securities to avoid the capital fight.
What are your thoughts on the Nigerian SEC setting up the Fintech division, especially for Crypto research? Let us know in the comment section below what your crypto enthusiast inside tells you. If you think the content was insightful, do not forget to like and share.
Also read:- India could regulate cryptocurrencies very soon.