The Securities and Exchange Commission (SEC) has restated its commitment to enhancing financial inclusion in the country through technology.
Director General of the SEC, Lamido Yuguda, who stated this at the joint session of the Senate Committee on Banking, Insurance and other Financial Institutions, Capital Market, ICT and Cyber Crime in Abuja, said the commission recognizes the disruption of FinTech in the financial industry and aims to create an enabling regulatory environment that would ensure a balance between investor protection and technological advancement.
He said to develop an appropriate regulatory framework, regulators need to understand the crypto asset space to be better positioned to address identified risks adding that SEC will advance efforts towards developing a comprehensive regulatory framework that ensures operators in the crypto asset space conduct their activities in a manner that protects investors and maintains financial system stability.
Director General of the SEC, Lamido Yuguda
In his words, “We believe that FinTech would not only bring about efficiency to the capital market but would also serve as a veritable tool for advancing Nigeria’s Financial Inclusion agenda, however, there is a need to develop an appropriate regulatory framework to ensure the safety of innovation to investors and preserve market integrity.”
“The SEC will continue to monitor developments in the digital asset space and further engage/collaborate with all critical stakeholders, including the CBN, to create a regulatory structure that enhances economic development while promoting a safe, innovative and transparent capital market” he added.
According to Yuguda, SEC’s approach is consistent with the approaches of several securities regulators around the world as in the United States of America, the US SEC requires platforms that offer trading in digital asset securities and operate as exchanges to register or seek to be exempted from registration.
“In the United Kingdom, the Financial Conduct Authority (FCA) requires firms that carry on specified activities, by way of business, involving a crypto asset, to be authorized. Crypto assets are viewed as financial products in South Africa and the Financial Sector Conduct Authority (FSCA) requires persons carrying out associated activities to be regulated.”
CBN Governor, Godwin Emefiele
Speaking earlier, the Chairman of the Joint Committee, Senator Uba Sani, said the Committee is on a fact finding mission in the interest of Nigerians and the nation’s economy, he noted that the Committee would look at enabling laws in line with global best practices.
“We shall look at the position of the CBN who have said cryptocurrencies are very volatile and supports insurgency. We are aware of the damage it has done and are poised to protect our economy and ensure that our people benefit where necessary but the Senate will always support innovation and the effective use of ICT for economic empowerment.” He said.