A division within a Government functionary, particularly in the national regulator of Nigeria i.e. Securities & Exchange Commission (SEC) has been established for the purposes of studying and examining the virtual currencies and how they receive investments.
The creation of a crypto-specific division within the SEC was apprised by one of SEC’s executive officials namely Lamido Yuguda who is the Director General of Nigerian SEC.
Nigerian SEC’s Director General, Lamido Yuguda was interviewed in the recent times. During the course of his interview, he revealed that SEC is taking cryptocurrencies and investment therein more seriously than ever before.
He said that in order for SEC to understand, study and examine the virtual currencies, SEC wants to depute teams of specialists. However, SEC has also suggested that for examining cryptocurrencies it is essential that either a crypto specific authority or a department is created within an authority.
However, SEC has suggested that the task of studying can be entrusted to SEC because it is equipped to deal with distinct investment vehicle. He further suggested that for doing so, SEC would need to create a division within itself which will then be solely for the purpose of cryptocurrencies.
However, until and unless the restrictions, implemented under Central Bank’s directive, are not lifted, nothing can be done. Not even SEC can think of bypassing the restrictions imposed by the Central Bank of Nigeria (CBN).
In order to achieve the target of understanding crypto and that crypto be regulated effectively, CBN’s directives would have to be revoked. In continuation of his interview, Yuguda further highlighted that there is a reason why SEC is eager to regulate Nigerian crypto space.
He claimed that for over a decade, SEC has been closely monitoring crypto industry. There is only a slight lack of knowledge by SEC otherwise it is capable of regulating cryptocurrencies at any time.
If “implementable” regulations are implemented in letter and spirit then that will bring transparency in the local crypto space. Irrespective of transparency, Yuguda also suggested that blockchain is without a doubt is an invention like a radio in its time.
It is a landmark achievement in the global market and therefore should be adopted by all without any doubts, claimed Yuguda. Nigeria is currently the lead country when it comes to virtual currency adoption in the African region.
The country is also working on the project for launching its official cryptocurrency i.e. CBDC. However, the Nigerian CBDC project is still under its development phase.
On the other hand, some of the officials associated with CBN heavily criticize the existence of cryptocurrencies. But they are not against the CBDC because they believe this could be a groundbreaking initiative for the country’s best economic interest.