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SEC to crack down on illegal trading in virtual space

Nigeria's Securities and Exchange Commission (SEC) said it is taking steps to eliminate illegal trading activities in the virtual assets space. It gave the warning during a virtual meeting with the Blockchain Industry Coordinating Committee of Nigeria (BICCoN). 

Acting Director-General SEC Dr. Emomotimi Agama, at the meeting with the umbrella body for Nigerian blockchain and cryptocurrency associations announced the Commission's commitment to upholding the integrity of the capital market and safeguarding the interests of all investors.

Agama said: "The Commission has come as a partner to seek collaboration in making sure that the capital market community is one that is respected globally for decency and fair play."

He indicated that recent concerns regarding crypto peer-to-peer (P2P) traders and their perceived impact on the exchange rate of the Naira has called for collective action and dialogue within the financial market ecosystem.

Commenting on the regulatory framework for digital assets, Agama reassured stakeholders that the SEC is working to establish guidelines that will accommodate the industry. He mentioned that these guidelines, which are currently being refined with input from various stakeholders, will cover activities within the cryptocurrency ecosystem, such as wallet providers, digital asset custodians, fund managers, and cryptocurrency exchange platform providers.

Agama expressed his desire for an innovative digital asset regulatory regime that will position Nigeria as Africa's Digital Asset Powerhouse. He emphasized the importance of striking the right balance between encouraging innovation and safeguarding national economic interests. Agama added, "Manipulations and all forms of activities that undermine our national interest would not be acceptable."

Additionally, Agama thanked the leadership of the BICCoN and assured them of the SEC's readiness to work closely with all stakeholders in the cryptocurrency ecosystem to create a better country for everyone. He emphasized the importance of collaboration and cooperation in addressing the challenges faced by the industry, stating, "Your insights and suggestions are invaluable as we seek to navigate these complexities together."

Agama also urged participants in the crypto space to be "patriotic enough to name and shame those that are involved in disrupting the markets negatively," and called for the delisting of the Naira from P2P platforms to prevent manipulation.

Chairman of the Fintech Association of Nigeria, Dr. Babatunde Oghenobruche Obrimah, lauded the SEC Director-General for his bold steps and expressed his organization's commitment to supporting the SEC's efforts to clean up the virtual ecosystem. Meanwhile, BICCoN requested the establishment of a working group to address the challenges facing the crypto space and propel the market forward.