The Securities and Exchange Commission (SEC) says it has set up a fintech division to understudy cryptocurrency investments and other digital products in order to establish regulations for the sector.
Lamido Yuguda, SEC director-general, told Reuters in an interview on Thursday.
In April, the commission entered into talks with the Central Bank of Nigeria (CBN) for a better understanding and regulation of the cryptocurrency market.
Yuguda told Reuters that “we are looking at this market closely to see how we can bring out regulations that will help investors protect their investment in blockchain”.
He said that regulations will be put in place once cryptocurrency trading is permitted within the Nigerian banking system.
Yuguda added that the commission seeks to partner with fintech companies to boost the marketing of domestic securities to prevent capital flight.
CBN had directed banks and other financial institutions to close accounts of persons or entities involved in cryptocurrency transactions.
It took a stance that cryptocurrencies pose the risk of loss of investments, money laundering, terrorism financing, illicit fund flows and other criminal activities.
In July, the apex bank announced that the pilot scheme of its digital currency (e-Naira) will kick off on October 1, 2021.
It selected Bitt Inc, a global fintech company, as the technical partner for the rollout of e-Naira.