Tuesday, February
23, 2021 / 3:11 PM / by SEC Nigeria / Header Image
Credit: iStock
The
Securities and Exchange Commission has stated that it is committed to enhancing
financial inclusion in the country through technology.
Director General of the SEC, Mr. Lamido Yuguda stated
this at the joint session of the Senate Committee on Banking, Insurance and
other Financial Institutions, Capital Market and ICT and Cyber Crime in Abuja,
Tuesday.
Yuguda said the SEC recognizes the disruption of
FinTech in the financial industry and aims to create an enabling regulatory
environment that would ensure a balance between investor protection and
technological advancement.
He said, “We believe that FinTech would not only bring
about efficiency to the capital market but would also serve as a veritable tool
for advancing Nigeria’s Financial Inclusion agenda.
“However, there is a need to develop an appropriate
regulatory framework to ensure the safety of innovation to investors and
preserve market integrity.
The SEC boss said to develop an appropriate
regulatory framework, regulators need to understand the crypto asset space to
be better positioned to address identified risks.
He said the SEC will advance efforts towards
developing a comprehensive regulatory framework that ensures that operators in
the crypto asset space conduct their activities in a manner that protects
investors and maintains financial system stability.
“The SEC will continue to monitor developments in the
digital asset space and further engage/collaborate with all critical
stakeholders, including the CBN, to create a regulatory structure that enhances
economic development while promoting a safe, innovative and transparent capital
market” he added.
According to Yuguda, the SEC’s approach is consistent
with the approaches of several securities regulators around the world as in the
United States of America, the US SEC requires platforms that offer trading in
digital asset securities and operate as exchanges to register or seek to be
exempted from registration.
“In the United Kingdom, the Financial Conduct
Authority (FCA) requires firms that carry on specified activities, by way of
business, involving a crypto asset, to be authorized. Crypto assets are viewed
as financial products in South Africa and the Financial Sector Conduct
Authority (FSCA) requires persons carrying out associated activities to be
regulated.
“In Malaysia, operators of digital asset platforms are
required to be approved by the Securities Commission (SC) as recognized market
operators. Several other securities regulators have taken similar positions”.
Speaking earlier, the Chairman of the Joint Committee,
Senator Uba Sani said the Committee is on a fact-finding mission in the interest of Nigerians
and the nation’s economy.
Sani said the Committee would look at enabling laws in
line with global best practices.
He said, “We shall look at the position of the CBN who
have said cryptocurrencies are very volatile and supports insurgency. The
Senate will always support innovation and the effective use of ICT for economic
empowerment.
‘We are aware of the damage it has done and are poised
to protect our economy and ensure that our people benefit where necessary”.
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Source : From the Web