SEC Embraces Blockchain Technology, Prioritizes Regulation
By Patience Ikpeme
The Securities and Exchange Commission (SEC) has reaffirmed its commitment to fostering the growth of blockchain technology in Nigeria while maintaining a robust regulatory framework.
In a keynote address at the Businessday Blockchain Conference 2024, the SEC Director General, Dr. Emomotimi Agama, highlighted the transformative potential of blockchain and its ability to revolutionize the capital markets and shape the Nigerian economy.
Dr. Agama emphasized that blockchain technology is no longer just a buzzword but a crucial component of the global financial and economic ecosystem. Its decentralized, transparent, and secure nature offers solutions to challenges such as financial exclusion, lack of transparency, and inefficiencies prevalent in many African countries.
To balance innovation with investor protection, the SEC has introduced several regulatory measures. The Accelerated Regulatory Incubation Program (ARIP) and Regulatory Incubation (RI) Program provide controlled environments for firms operating in the digital asset space to test new models, products, and services.
The recent approval-in-principle granted to two digital asset exchanges and five firms participating in these programs demonstrates the SEC’s commitment to enabling innovation.
The SEC has also clarified its regulatory stance on digital assets, stating that they are classified as securities unless proven otherwise. This ensures that issuers and sponsors are subject to appropriate regulatory oversight, protecting investors and maintaining market integrity.
To ensure that Nigeria’s regulatory framework remains robust and adaptive, the SEC is consistently aligning with international best practices by collaborating with global regulatory bodies like the International Organization of Securities Commissions (IOSCO). This fosters cross-border collaboration and enhances investor confidence.
Dr. Agama called upon all stakeholders, including governments, regulators, innovators, businesses, and civil society, to embrace blockchain technology and work together to maximize its benefits for Africa. He emphasized the need for a shared vision, collaboration, and a focus on building a prosperous and inclusive Africa through the adoption of blockchain.
With its commitment to fostering innovation while ensuring regulatory oversight, the SEC is playing a vital role in shaping Nigeria’s blockchain landscape and positioning the country as a leader in this emerging technology.
