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Nigeria: Cryptocurrency Ban – SEC, CBN to Present Stage Area for Investments – NEWPAPER24

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Nigeria: Cryptocurrency Ban – SEC, CBN to Present Stage Area for Investments

2021-02-21 16:44:55

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An official of SEC says cryptocurrency is a market of about two trillion {dollars} which can’t be ignored.

The Central Financial institution of Nigeria (CBN) and the Securities and Alternate Fee (SEC) have agreed to collaborate and conduct analysis with a view to discovering methods of regulating the cryptocurrency market.

They mentioned this at a digital lecture organised by the Affiliation of Capital Market Lecturers of Nigeria (ACMAN) in Abuja on Sunday.

The Head of Division, Registration, Exchanges, Market Infrastructure and Innovation Division of SEC, Timi Agama, described cryptocurrency market as an air that might at present not be caged or regulated.

He famous that cryptocurrency is a market of about two trillion {dollars} which couldn’t be ignored.

Based on him, “the world can’t be shifting ahead and we can be static.”

Mr Agama mentioned though SEC or the capital market wouldn’t accommodate or encourage any fraudulent practices that allowed for cash laundering, cryptocurrency was a market to look into.

“There may be a whole lot of funding transfer into the cryptocurrency market and the tendency is that it’ll scale back the quantity of investments within the inventory market.

“A part of the will of the SEC even sooner or later is to supply a regulatory framework that can maintain all these challenges that we’ve seen internationally and your complete world is grappling with by way of cryptocurrency and digital property.

“For us at SEC and capital market, it’s one thing to have a look at, the world can’t be shifting ahead and we can be static, no.

“It is vital for us to evaluation, perceive, recognize and introduce rules that can information the motion of the market on this route.

“A market that has alternative for ICOs, derivatives, isn’t a market we are able to ignore.

” It’s our want that we do extra work, collaborate as regulators and analyse to be sure that we offer a stage taking part in subject the place Nigerians, worldwide buyers and whoever is on this house can be comfy and pleased.

“I hope that in doing that, we’re going to have the ability to drive overseas portfolio funding, International Direct Funding (FDI) into this nation and construct our capital market,” he mentioned.

Kevin Amugo, director, Monetary Coverage and Regulation Division of the CBN, mentioned the ban was to allow it work along with stakeholders in addressing the anonymity of the expertise.

Mr Amugo mentioned the CBN would proceed to develop insurance policies that will optimise the alternatives of the monetary expertise trade and promote financial panorama of the nation.

He mentioned shopper safety was an enormous problem within the cryptocurrency market because it was speculative and no financial fundamentals drive its worth.

“The committee on cryptocurrency headed by the Nationwide Safety Adviser and members are EFCC, NFIU, SEC, NAICOM and all regulators to strategize and give you a nationwide place not a financial coverage place.

“Now we have issued our preliminary draft however COVID-19 impeded our efforts to conclude our actions.

“Due to pursuits crypto has regenerated, I believe it’s excessive time we reconvened and be sure that we take a nationwide place, in order that what’s issued is a nationwide place not a CBN’s or SEC’s place.

“We’re not stifling fin-tech operations, CBN has been proactive in granting licenses to fin-tech operators.

“The best way ahead for us can be steady engagement, ongoing consultations and tutorial analysis.

“We’re partaking internationally and domestically to make sure that we come out with a harmonised and implementable place,” he mentioned.

Gbite Oduneye, chief government officer of the Eagle International Market (EGM) Lagos, appealed to the CBN and SEC to have a look at methods to safeguard towards cash laundering available in the market.

Mr Oduneye appealed to regulators to search out methods to control the cryptocurrency market as there have been prospects in it.

“We perceive the difficulties available in the market however the regulators should organise and search for methods, organise and make individuals function the way in which they need available in the market.

“Each new innovation will include a variety of difficulties however we’ve the revolutionary minds, nice regulators that may allow us to take benefit on this,” he defined.

ACMAN is a community of researchers in capital markets particularly lecturers within the nation’s universities.

(NAN)

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