SEC sets up fintech division for cryptocurrency

The Securities and Exchange Commission has set up a fintech division to understudy crypto investments and products in order to come up with a regulatory framework for cryptocurrencies.

This was disclosed by the Director-General of SEC, Lamido Yuguda, during a virtual interview with Reuters.

“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.

Yuguda did not provide a timeline for regulations to roll out, but said that SEC would regulate once crypto is accepted within the banking institution for transactional processes.

According to him, the planned launch of the e-naira is a result of the commission’s engagement with the CBN.

He said the commission was seeking to work with fintech firms to boost the marketing of domestic securities to prevent capital flight.

He added that SEC was looking to boost savings through investment schemes, which currently have over N4tn ($9.7bn) under management, split between public and private fund managers.

Yuguda said the regulator had asked private managers to put in place custody arrangements to protect investors.

In September 2020, SEC had described digital assets, including crypto assets, as securities, saying it would regulate them.

Copyright PUNCH.

All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH.

Contact: [email protected]