The Nigerian Securities and Exchange Commission (SEC) announced on Thursday that it has established a fintech division to research crypto investments and products to develop policies.
The disclosure was made by SEC director general Lamido Yuguda during a virtual interview with Reuters in Abuja on Thursday.
Yuguda said, “We are closely watching this market to see how we can issue regulations that will help investors protect their blockchain investment.”
While he has not given a timetable for enacting the regulation, the SEC chief said the capital market regulator will intervene with regulation once crypto is allowed within the Nigerian banking system.
The SEC has sought to regulate cryptocurrencies because they qualify as securities transactions. Yuguda revealed that the recent launch of the country’s digital currency, e-naira, is the result of his involvement with the CBN.
The committee wants to work with fintech companies to boost the marketing of domestic securities to prevent capital flight.
He said the SEC wants to drive savings through investment programs, which currently have more than N4 trillion ($9.7 billion) under management across public and private fund managers. Yuguda also said the regulator has asked private managers to put in place custody arrangements to protect investors.