The Securities and Exchange Commission (SEC) announced that it has approved two cryptocurrency exchanges in principle, allowing young people in Nigeria to participate in the capital market.
SEC Director General Dr. Emomotimi Agama made this claim in a statement released by the Commission on Wednesday, BrandSpur local news brand reports.
Agama claims that the approval of the cryptocurrency exchanges was motivated by the need to establish a financial ecosystem that is inclusive and takes advantage of the younger generation’s increasing interest in digital assets in the nation. He continued by saying that the program supports President Bola Tinubu’s goal of getting more young Nigerians involved in the financial markets.
The SEC DG stated that international trends also had an impact on the decision, in addition to the intention of encouraging young Nigerians to engage in the capital market.
According to him: “It is crucial that we respond to the global trends in digital finance. SEC is committed to ensuring that Nigeria remains competitive and innovative in the global financial markets.
“We are building the necessary talent and infrastructure to manage the challenges and opportunities that these new asset classes present,” he added.
Agama noted that a large number of youthful Nigerians are already heavily engaged in cryptocurrency trading, and the SEC wants to incorporate them into the official capital market as opposed to excluding them. He went on to say that the SEC is concentrated on making sure there are strong laws in place to safeguard investors and grow the market since President Tinubu wants to include young Nigerians in the capital market.
However, he pointed out that the SEC is moving cautiously to make sure the cryptocurrency exchanges don’t represent a serious threat to investors or the US economy.
According to Agama, the commission’s Virtual Assets Service Providers Regulation, which was created to comprehend the particular characteristics of cryptocurrency exchanges and the larger digital financial ecosystem, gave rise to the commission’s authority over digital asset exchanges. The approval-in-principle given to Quidax Technologies and Busha Digital, he continued, is part of a carefully monitored regulatory trial.
Furthering: “These companies, having met the SEC’s stringent fit-and-proper-persons test and other regulatory guidelines, are now part of the regulatory incubation process.
“This process allows the SEC to closely monitor their activities, assess the risks they pose, and ensure they operate within a framework that protects both the economy and individual investors.
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“The regulatory incubation program allows us to study these exchanges in detail, understand the risks they might pose, and provide the necessary guidance and regulations to ensure they operate smoothly and ethically.
“We are committed to making sure these platforms operate under regulations comparable to those in other jurisdictions,” he added.
Recall that last Thursday, the Nigerian Securities and Exchange Commission (SEC) declared that it had given two cryptocurrency exchanges, Quidax and Busha, an Approval-in-Principle, granting them the status of legally recognised cryptocurrency trading platforms in the nation. The Commission’s Accelerated Regulatory Incubation Program (ARIP) authorised the two exchanges.
Continuing, under its Regulatory Incubation (RI) Program, the Commission accepted four additional companies to test their ideas and technologies. Dream City Capital, Housing Exchange.NG Ltd., Trovotech Ltd., and Wrapped CBDC Ltd. are the four companies that provide platforms for digital assets.
Not all organisations that have applied to ARIP and the RI Program are those that have been announced, according to the SEC. It further stated that other applications are being evaluated and, if they meet all conditions, will be considered for approval on a case-by-case basis.
