Nigeria’s Finance Minister, Wale Edun, has advocated for the establishment of comprehensive cryptocurrency regulations following the introduction of the newly inaugurated Securities and Exchange Commission (SEC) board. Local media reported that Edun urged the SEC to tackle the complexities surrounding cryptocurrency regulation.

According to Edun, cryptocurrencies are a “fast-moving” and “complex” sector, necessitating stringent oversight to maintain the integrity of Nigeria’s capital market. His remarks were made during the board’s inauguration in Abuja.

The seven-member SEC board, approved by President Bola Tinubu on April 19, 2024, includes SEC Chairman Mairiga Katuka, Director General Emomotimi Agama, Executive Commissioner of Legal and Enforcement Frana Chukwuogor, and Executive Commissioner of Operations Bola Ajomale.

Since their appointment, the SEC has announced plans to update its regulations on digital asset issuance, offering platforms, exchanges, and custody. This includes the introduction of a special compliance program known as the Accelerated Regulatory Incubation Programme (ARIP) to help crypto entities meet local requirements.

However, Edun believes these amendments are insufficient. He cautioned that crypto entities could take advantage of the nation’s minimal registration requirements and urged for the implementation of robust corporate governance practices.

“You must also watch out for regulatory arbitrage,” Edun warned, adding that the commission needs to “quickly identify and disclose conflicts and adhere to global best practices.”

Edun emphasized the need to stay informed and proactive, citing developments in digital currency, artificial intelligence (AI), and overall digital transitions. “Unlike basic industries with settled technologies, the financial sector is rapidly evolving. To provide necessary approvals and guidance, the SEC must stay informed and adaptable,” he stated.

In response, Katuka assured that the SEC aims to create a more prosperous and resilient financial ecosystem. He expressed optimism about Nigeria’s future economic outlook, noting that the current administration’s reforms would “engender economic growth.”

Nigerian regulators have been focusing on leveraging emerging technologies to bolster the economy. The National Information Technology Development Agency in Nigeria recently announced plans to establish research centers centered on pivotal technologies like Blockchain and AI.

These developments come amid Nigeria’s legal disputes with the crypto exchange Binance and its executive, Tigran Gambaryan, who has been detained by the Economic and Financial Crimes Commission (EFCC) since February.

Despite calls from US lawmakers alleging baseless charges, Nigeria has defended the due process involved in the case.

For more updates on the evolving landscape of cryptocurrencies, investing, and finance, stay tuned to Global Crypto News.

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