SEC, CBN working on cryptocurrencies trading regulation – Yuguda

Securities and Exchange Commission (SEC) says is working with (CBN) for better understanding and regulation of cryptocurencies in country.

Director-General, SEC, Lamido Yuguda, said this at 2021 first post-Capital Committee (CMC) virtual news conference.

Yuguda said that commission was in with CBN for better understanding and regulation of crytoassets .

He said that the commission had suspended the implementation of crytoassets guidelines due to lack of access to Nigerian bank accounts.

“We are in with CBN for both understanding and better regulating of this .

“We will be able to come back to you later to inform you of the outcome of these engagements.

“But because of the lack of access to commercial bank accounts, we had to suspend our own guidelines of 2020, the implementation of that circular is suspended until these operators are able to access to Nigerian bank accounts.

“Remember that nobody operates in the Nigerian capital market if that person does not access to a Nigerian bank account,” he said.

Yuguda, however, said that SEC remained very supportive of Fintechs and had invested so much in developing a framework to support their operations.

“Let me say that the SEC remains very supportive of fintechs.

“We invested so much in developing a framework for supporting fintechs in the various areas and fintechs are in areas of crowd funding, investment advice and cryptocurrencies and the like,” he said.

Yuguda said that the market had been disrupted by the apex bank prohibition on access to Nigerian bank accounts by crypto exchange.

“In all other areas, nothing has changed, but in the area of crypto assets, you know that with the recent prohibition by the CBN on access to Nigerian bank accounts by crypto exchanges, that market has been disrupted.

“And the truth of the matter is that while the SEC had issued guidelines in 2020 aimed at regulating this market, for now for all intents and purposes, because these exchanges do not have access to commercial bank accounts in Nigeria the market for now does not exist,” he said.

According to him, the commission recognises the impact of FinTechs on capital market .

He assured the public that SEC would remain accommodative of this development.

“We shall continue to engage players and support them to operate lawfully.

“Our aim is to ensure the delivery of safe products and services without stifling innovation,” Yuguda said.

He, therefore, encouraged FinTech firms to approach the Commission for due registration and desist from operating illegally. (NAN)