The recent approval-in-principle to two crypto exchanges is to give Nigerian youths the opportunity for capital market participation, says the Securities and Exchange Commission (SEC).
The director-general of SEC, Dr. Emomotimi Agama stated this during a meeting in Abuja, stating that, in line with the desire of President Bola Tinubu to engage youthful population in the country, it became important to create a structure that will enhance that participation of the youths and other Nigerians in the market. The commission had, last week, granted approvals to Busha Digital Limited and Quidax Technologies Limited.
According to the SEC DG, it is important that we act accordingly, we are a country but we cannot be left out of the global phenomenon that is beginning to take shape, saying, SEC, as a future looking institution, is poised to make sure that we are in the league of countries that do what is needed.
Agama said, SEC is doing all of these cautiously to ensure these institutions do not pose risks to the national economy and to citizens who are investors too.
He disclosed that, the SEC’s programme on the digital assets exchanges comes from its virtual Assets Service Providers Regulation, adding that in view of the nature of crypto exchanges and the entire industry, it was important to outline a regulation that allows the commission to fully understand crypto exchanges and virtual financial assets services providers.
Agama said, the idea was borne out of the initial Regulatory Incubation Programme of the SEC in its desire to understudy fintech platforms and products that are new to the market in order t to dimension the risks that are associated with these institutions and their products as clearly, the SEC’s primary responsibility is investor production and market development.
He emphasised that the commission has not yet outrightly licenced any exchange, but has provided an approval in principle, adding that, it is a controlled experiment wherein companies that have applied, meet the fit and proper persons test and other regulatory guidelines are invited into a regulatory incubation wherein they are understudied.
“It gives us an opportunity to know exactly what they are doing, we know the risks that they pose to our economy, we know the risks they pose to investors and the risks they pose to themselves as operators.
“The idea is you need to do that to be able to study them and provide all the guidance and regulations required by them to operate in the system seamlessly while also not defrauding Nigerians, not causing chaos to Nigerians, our economy and the entire system at large. We are making sure that they operate within regulations similar to what is obtainable also in other jurisdictions,” Agama explained.
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