THE Nigerian Securities and Exchange Commission (SEC) has vowed to delist naira trading on peer-to-peer (P2P) platforms to rid the virtual assets space of illegal trading activities and protect investors’ interests.
SEC’s Acting Director General, Emomotimi Agama, declared this at a virtual meeting with the Blockchain Industry Coordinating Committee of Nigeria (BICCoN), an umbrella body of blockchain and cryptocurrency associations in Nigeria, on Monday, May 6.
He said, “One of the things that need 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.
“We ask that those involved in sharp practices that undermine national interest should cease and desist. We encourage you to reach out to us by naming and shaming the bad actors.”
The ICIR reports that the activities of cryptocurrency trading have raised concerns recently.
Read Also:
- CBN lifts ban on cryptocurrency transactions, issues new guidelines
- Fintech companies warns customers against crypto trading
- Binance pulls out of Nigeria, suspends naira services
On April 30, the Central Bank of Nigerians (CBN) directed fintech firms such as Kuda, Opay, PalmPay, and Moniepoint to stop onboarding new customers.
Following the directive, on May 3, fintech companies released a notification to suspend any accounts of customers discovered to be trading cryptocurrency or virtual currencies on their platforms.
According to Agama, the SEC will be quick to utilise all the powers within its mandate to handle issues that are negative and pose a threat to the nation’s interest.
He stressed that recent concerns regarding crypto P2P traders and their perceived impact on the naira exchange rate had underscored the need for collective action and dialogue within the financial market ecosystem.
“There are basic practices enshrined in the Investments and Securities Act 2007, and we expect that everyone will abide by those rules. Some may say there are 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 the 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 new SEC boss said.
He told the stakeholders within the cryptocurrency ecosystem that the SEC was desirous of working with them to provide the assurance needed by all who operate within the market’s rules.
“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 said.
Agama hinted that the proposed regulatory guidelines currently being fine-tuned for activities within the cryptocurrency space would include 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, and virtual asset brokerage services.
“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 tokenisation (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. We have a great market ahead of us, and we have the talents and the people to make the market great,” he said.
He warned that manipulations of activities that undermine the nation’s interest would not be acceptable, urging stakeholders to explore innovative solutions to the problem and strike the right balance between encouraging innovation and safeguarding the country’s economic interests.