SEC Set Up Fintech Division To Understudy Cryptocurrency Investments

The Securities and Exchange Commission (SEC) says it has set up
a fintech division to understudy cryptocurrency investments and
other digital products in order to establish regulations for the
sector.

Lamido Yuguda, SEC director-general, told Reuters in an
interview on Thursday.

In April, the commission entered into talks with the Central
Bank of Nigeria (CBN) for better understanding and regulation of
the cryptocurrency market.

Yuguda told Reuters that “we are looking at this market closely
to see how we can bring out regulations that will help investors
protect their investment in blockchain”.

He said that regulations will be put in place once
cryptocurrency trading is permitted within the Nigerian banking
system.

Yuguda added that the commission seeks to partner fintech
companies to boost the marketing of domestic securities to prevent
capital flight.

CBN had directed banks and other financial institutions to close
accounts of persons or entities involved in cryptocurrency
transactions.

It took a stance that cryptocurrencies pose the risk of loss of
investments, money laundering, terrorism financing, illicit fund
flows and other criminal activities.

In July, the apex bank announced that the pilot scheme of its
digital currency (e-Naira) will kick off on October 1, 2021.

It selected Bitt Inc, a global fintech company, as the technical
partner for the rollout of e-Naira.

The Securities and Exchange Commission (SEC) says it has set up
a fintech division to understudy cryptocurrency investments and
other digital products in order to establish regulations for the
sector.

Lamido Yuguda, SEC director-general, told Reuters in an
interview on Thursday.

In April, the commission entered into talks with the Central
Bank of Nigeria (CBN) for better understanding and regulation of
the cryptocurrency market.

Yuguda told Reuters that “we are looking at this market closely
to see how we can bring out regulations that will help investors
protect their investment in blockchain”.

He said that regulations will be put in place once
cryptocurrency trading is permitted within the Nigerian banking
system.

Yuguda added that the commission seeks to partner fintech
companies to boost the marketing of domestic securities to prevent
capital flight.

CBN had directed banks and other financial institutions to close
accounts of persons or entities involved in cryptocurrency
transactions.

It took a stance that cryptocurrencies pose the risk of loss of
investments, money laundering, terrorism financing, illicit fund
flows and other criminal activities.

In July, the apex bank announced that the pilot scheme of its
digital currency (e-Naira) will kick off on October 1, 2021.

It selected Bitt Inc, a global fintech company, as the technical
partner for the rollout of e-Naira.