The cryptocurrency space, unlike the traditional financial industry, is an emerging market that several national governments have not welcomed or fully incorporated into their financial systems.
Therefore, several regulators have been evaluating the potential of blockchain and crypto. This is evident in the way some countries are launching research teams for critical analysis.
Read also: CBN Drafts Guidelines About Its CBDC.
While some Western countries are doing this, the African ones are not left out. On Thursday, the Director-General of the Nigerian Securities and Exchange Commissions—Lamido Yuguda—discussed this issue in an interview with Reuters.
Lamido revealed that the Nigerian SEC is setting up, in its Financial Technology Division, a research team with prime focus on cryptocurrency investments and product offerings.
According to the Director-General, the essence of the team is to look into the industry vis-a-vis the Nigerian context and propose practical solutions that will fluidly regulate crypto activities in the country.
At the moment, the Central Bank of Nigeria has banned cryptocurrency. That notwithstanding, Nigerians are actively engaging in crypto trading through P2P. In fact, Coinbench previously reported that Nigerians have traded $204 million worth of BTC through P2P.
In lieu of that, Lamido noted that the regulations might not be brought to the public even when they have been drafted. It will only be made into law when the ban on cryptocurrency has been lifted.
He told Reuters that the recent e-naira the CBN launched is a product of the series of meetings the SEC had with the bank. Therefore, it’s more imperative that SEC establish the research team to properly look into the possibilities of crypto products and investments.