The Securities and Exchange Commission (SEC) has called for the delisting of the naira from peer-to-peer platforms to mitigate potential manipulation risks.
This is in a bid to rid the virtual assets space of illegal
trading activities and uphold the integrity of the capital market and protect
the interests of all investors.
This was stated by Acting Director General of the SEC, Dr.
Emomotimi Agama during a virtual meeting with the Blockchain Industry
Coordinating Committee of Nigeria (BICCoN) the umbrella body of all major
blockchain and cryptocurrency associations in Nigeria, Monday.
Agama stated that the SEC Nigeria will not hesitate to
utilise all the powers within its mandate to handle issues that are negative
and pose a threat to national interest saying that the Commission has come as a
partner to seek collaboration in making sure that the capital market community
is one that is respected globally for decency and fair play.
The SEC boss said the recent concerns regarding crypto P2P
traders and their perceived impact on the exchange rate of the Naira has
underscored the need for collective action and dialogue within the financial
market ecosystem.
He said, “There are basic practices as enshrined in the
Investments and Securities Act 2007 and we expect that everyone will abide by
those rules. Some may say no rules to play by, but do not forget that we have
the Investments and Securities Act 2007 that some actions by participants today
may be violating, hence the law is the law irrespective of the technology used.
“However, for specific Digital Asset regulatory regime that
many have been calling for, we want to assure you that we are working
tirelessly to establish an accommodating regulatory guideline for digital
assets. The SEC as your regulator is desirous to work with you by providing a
level of assurance that is needed by all that are operating within the rules of
the market”.
The DG stated that the proposed regulatory guidelines which
is currently being fine-tuned with suggestions by various stakeholders, will
encompass various activities within the cryptocurrency ecosystem ranging from
Wallet providers, digital asset custodians and fund managers, Cryptocurrency
Crowdfunding, Initial Coin Offerings (ICOs), Security Token Offerings (STOs),
Initial Exchange Offerings (IEOs), Cryptocurrency Exchange platform providers,
Virtual Asset brokerage services etc., ensuring that every Nigerian playing
within the industry with the potential to contribute to economic progress is
included, supported and properly regulated.
“I am poised for an innovative digital asset regulatory
regime that will sustain Nigeria as Africa’s Digital Asset Powerhouse with
diverse solutions like Real World Asset Tokenization (RWA) that will drive
wealth and catalyse our capital market. We must explore innovative solutions to
this problem and strike the right balance between encouraging innovation and
safeguarding our national economic interests. This we will do in a friendly and
firm manner, to enable us to achieve the desired result”.
“We have a great market ahead of us and we have the talents
and the people to make the market great. Mr. President is concerned about the
teeming youths involved in this space and would encourage them to do the right
thing and develop an ecosystem that we all will be proud of. It becomes
necessary that we do what is right. Manipulations and all forms of activities
that undermines our national interest would not be acceptable. It is therefore
very important that we know that the SEC by virtue of the Section 13 of the ISA
speaks to the regulation of all capital market activities.
Agama expressed his gratitude to the leadership of the
Blockchain Industry Coordinating Committee of Nigeria (Biccon) the umbrella
body of all major blockchain and cryptocurrency Associations in Nigeria, and
assured them of the commission’s readiness to work closely with all
stakeholders in the cryptocurrency ecosystem to create a better country for all
of us.
“With our deep understanding of this industry and the
cryptocurrency sub sector, we recognize the importance of collaboration and
cooperation in addressing the challenges we face; hence your insights and
suggestions are invaluable as we seek to navigate these complexities together.
We need your support as much as you need ours.
“On that note, I want to emphasize that we are working on
different fronts to sustain decent practices within our market, however, we are
here to meet ourselves to know those playing within the sector decently and are
open to hearing your suggestions on how we can effectively manage all obscure
cryptocurrency trading activities within our jurisdiction p2p inclusive
irrespective of the challenge we all know that p2p trading posses. We must
explore innovative solutions to this problem and strike the right balance
between encouraging innovation and safeguarding our national economic
interests. This we will do in a friendly and firm manner, to enable us to
achieve the desired result.
Agama stated that one of the things that needs to be done is
delisting the naira from P2P space in order to avoid the level of manipulation
that is currently happening enjoining participants in the crypto space to be
patriotic enough to name and shame those that are involved in disrupting the
markets negatively.
“I want to seek your co-operation in dealing with this as we
roll out in the coming days the regulations that would take control of these
areas. We want to assure that this management will ensure that people or
institution that require registration with the SEC are quickly licenced. We
assure you that we will give guidance when necessary and do well to streamline
the processes to make it less difficult.
“We ask that those involved in sharp practices that
undermine national interest should cease and desist. It is in our interest as a
people to protect what belongs to us. We encourage you to reach out to us by
naming and shaming the bad actors. Together, I am confident that we can weed
out bad actors and harness the immense potential of this progressive technology
for the benefit of all Nigerians in tandem with this government’s renewed hope
agenda” he added.
In his remarks, the Chairman of the Fintech Association of
Nigeria Dr. Babatunde Oghenobruche Obrimah commended the Director General for
his bold steps and the relationship with the ecosystem and pledged their
commitment to work with the DG and grant him all the support that will help him
succeed in sanitizing the virtual ecosystem.
On their part, BICCoN requested the setting up of working
group to tackle the various challenges facing the crypto space and in a bid to
move the market forward.
0 comments:
Post a Comment