Emmanuel OchayiMinister of Finance Calls for Stringent Oversight On Cryptocurrency
The newly inaugurated board of the Securities and Exchange Commission (SEC) has been called upon to tackle the complexities of regulating cryptocurrencies and ensure stringent oversight to maintain market integrity in the capital market.
The call was made by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, during the board’s inauguration on Monday.
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In his address, Edun emphasised the rapid and complex nature of cryptocurrencies, highlighting the need for the SEC to be proactive and innovative.
“The SEC board should be willing to accept the challenge of regulating these new areas, particularly crypto, as they are fast-moving complex areas,” he stated.
Regulatory Arbitrage Concerns
Edun cautioned against companies exploiting minimal registration requirements to falsely claim they are licensed.
“You must also watch out for regulatory arbitrage, where a company with a portfolio of huge, sophisticated transactions now comes and takes the lowest level of registration that they can just so they can say they are licensed and regulated,” he warned.
Ensuring Market Integrity in cryptocurrency
The minister stressed the importance of strict oversight to preserve market integrity. “Ensure top-notch corporate governance practices, quickly identify and disclose conflicts, and adhere to global best practices.
Do not become stumbling blocks for those awaiting processes and approvals,” Edun explained.
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Adapting to Fast-Paced Developments
Edun highlighted the necessity for the SEC to stay informed and adaptable in the face of rapid developments in areas such as artificial intelligence, digital currency, and overall digital transitions.
“The top minds are gravitating towards finance and technology,” he noted. “Unlike basic industries with settled technologies, the financial sector is rapidly evolving with innovations in fintech, AI, and crypto. To provide necessary approvals and guidance, the SEC must stay informed and adaptable.”
Response from the SEC Board
Responding to the minister’s address, the Chairman of the SEC board, Mairiga Katuka, assured that the board would leverage its collective expertise, innovation, and passion to drive growth.
“We are committed to leveraging our collective expertise to drive the growth and integrity of Nigeria’s financial markets,” Katuka stated.
Optimism for Nigeria’s Economic Outlook
Katuka expressed optimism about Nigeria’s future economic outlook, citing reforms by the current administration that were driving economic growth.
“The nation’s future economic outlook appears positive, driven by reforms put in place by the current administration including robust inflation management, social protection, macroeconomic stability initiatives, and improved private sector development. These initiatives would undoubtedly engender economic growth,” he added.
The call for stringent oversight of cryptocurrencies by the SEC board underscores the complexities and rapid evolution of the financial sector.
As the SEC board takes on this challenge, the focus will be on maintaining market integrity and fostering a resilient financial ecosystem in Nigeria.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
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