The Nigerian SEC (Securities and Exchange Commission) has created a financial technology (fintech) subdivision to formulate legislation for Nigeria’s cryptocurrency industry. This fintech unit will conduct thorough research on crypto products and investments. The main purpose is to safeguard new and existing crypto investors and to regulate the digital asset industry in the country.
According to the SEC director-general, Lamido Yuguda, Nigeria sees crypto assets as securities until proven otherwise. Once cryptocurrencies are integrated into the country’s banking system, Yuguda said, the SEC will begin regulating them.
Cryptocurrency in Nigeria
The West African country has witnessed a rise in the use of digital assets, especially among the youth. This prompted the government to take action.
Nigeria’s SEC has been clear on its intention of regulating cryptocurrencies for years now. Their resolve precedes the time when the Nigerian Central Bank banned financial institutions from offering any crypto-related assistance.
Back in 2020, the SEC was collaborating with many institutions, including the World Bank, to develop the Nigerian economic ecosystem. The idea was to convert Nigeria into a more crypto-friendly economy. When the crypto industry blooms, Nigeria should not be left behind.
The Need for Crypto Assets
African countries have abundant natural resources like gold, oil and coal. Yet their economies suffer from poor leadership, corruption, recession and youth unemployment. Cryptocurrencies act as a good earning alternative for the youth which is tackling problems like inflation.
This popularity is reflected in Chainalysis’ report on crypto adoption. Chainalysis is a firm that analyses trends in the crypto industry. It ranked Nigeria sixth on its list of “most crypto adopting country” across the globe.