SEC Initiates Measures to Curb Illegal Trading in Virtual Assets
By Patience Ikpeme
The Securities and Exchange Commission (SEC) has declared its resolve to clamp down on illegal trading activities within the Virtual Assets space, affirming its commitment to maintaining the integrity of the capital market and protecting investors’ interests.
Acting Director General of the SEC, Dr. Emomotimi Agama, made this announcement during a meeting with the Blockchain Industry Coordinating Committee of Nigeria (BICCoN), representing Nigerian blockchain and cryptocurrency associations.
In his address, Dr. Agama emphasized the necessity for collaboration to ensure a capital market known globally for its integrity and fairness. He cited recent concerns regarding crypto peer-to-peer (P2P) trading and its potential impact on the Naira’s exchange rate, calling for concerted action and dialogue within the financial market ecosystem.
Addressing regulatory concerns, Dr. Agama assured stakeholders of the SEC’s ongoing efforts to establish comprehensive guidelines tailored to the digital asset industry.
These guidelines, currently undergoing refinement with input from stakeholders, will encompass various activities within the cryptocurrency ecosystem, including wallet providers, digital asset custodians, fund managers, and cryptocurrency exchange platform providers.
Dr. Agama articulated his vision for an innovative digital asset regulatory framework that positions Nigeria as Africa’s Digital Asset Powerhouse while balancing innovation with national economic interests.
He underscored the SEC’s stance against activities undermining national interests, stating that such manipulations would not be tolerated.
Expressing gratitude to BICCoN’s leadership, Dr. Agama reiterated the SEC’s commitment to collaborating closely with all stakeholders in the cryptocurrency ecosystem to enhance the country’s regulatory environment.
He emphasized the importance of collective efforts in addressing industry challenges, recognizing stakeholders’ insights and suggestions as invaluable in navigating complexities.
Furthermore, Dr. Agama urged participants in the crypto space to play a patriotic role by exposing individuals involved in market disruptions, advocating for the delisting of the Naira from P2P platforms to prevent manipulation.
Dr. Babatunde Oghenobruche Obrimah, Chairman of the Fintech Association of Nigeria, commended the SEC Director General’s proactive measures and pledged his organization’s support in cleaning up the virtual ecosystem.
Meanwhile, BICCoN called for the establishment of a working group to address industry challenges and propel market advancement.
The SEC’s initiative signifies a concerted effort to foster a regulated and transparent virtual asset market, ensuring investor protection and promoting Nigeria’s standing as a leader in the digital asset landscape.
