The Nigerian Securities and Exchange Commission (SEC) is trying to alleviate the concerns of the local crypto community.
The top securities regulator recently stated that it is open to legalizing buy and sell Bitcoin, albeit in a positive manner.
The move comes after a series of crackdowns against digital currency service providers and in some cases, users by the Nigerian government over the last few months. But now, the regime is extending an olive branch to crypto users.
According to Dr. Momotimi Agama, the current in-charge of the SEC, the state can meaningfully regulate crypto with investor protections and market integrity in mind. The regulator stated:
“So clearly, for us, it is all about having to make them understand—get people more educated about cryptocurrency trading, digital asset trading, and everything that has to do with it. There are opportunities around it, so let’s look at the opportunities, and as such, we’ll deal with everyone who is not complying with our regulations,”
Dr. Agama gave these comments during a recent interview with an African news outlet. Overall, he seemed confident that he could manage the digital asset space by incorporating users and address the myriad of challenges faced by them.
Nigerian Regulatory Climate
The Nigerian authorities have tumultuous relationship crypto after a sharp fall in the worth of the Naira national currency earlier this year (bitcoin price to naira). The paperback’s free fall resulted in the government tightening control over the forex market and placed much of the blame of the resulting economic woes on the crypto sector.
The Nigerian government targeted Binance soon after the currency woes forced the economy into retreat. Binance executives were taken into custody, harassed and prosecuted by the state’s agencies. Two of the top executives of the former Chinese platform faced a range of securities-related charges. The average crypto user also had to face restricted access to these platforms and wider scrutiny. This clampdown on the market caused widespread mistrust of the authorities and much of crypto usage reportedly went underground.
The Future
The sudden change in tone from the Nigerian authorities could spell a major policy change towards the crypto economy, or it could be a continuation of the status quo. The top Nigerian regulator wants to enact “positive crypto regulation” but did not give specifics about it. He also mentioned protecting investors from scams and fraudulent activities emanating from the market.
However, there are no universally agreed-upon positive crypto rules. Each country is trying its luck with a different yardstick with limited success overall. It remains to be seen what kind of crypto industry the government will allow in the biggest African economy.
While the Nigerian government’s stance on cryptocurrency remains fluid, it’s clear that the digital asset landscape is evolving rapidly. As regulations continue to shape the industry, it’s essential for Nigerians interested in Bitcoin and other cryptocurrencies to stay informed and exercise caution.
Platforms like Remitano can provide a convenient way to buy and sell cryptocurrencies, but it’s crucial to conduct thorough research and prioritize security when choosing a platform. Always verify the legitimacy of any platform and be wary of scams or fraudulent activities.
Remitano – An Easy Buy-Sell Crypto platform
As the regulatory environment develops, it’s likely that more opportunities will arise for Nigerians to engage with cryptocurrencies. However, until then, it’s advisable to approach the market with prudence and a keen understanding of the associated risks.