SEC Acting DG calls for delisting naira from Crypto P2P platforms, name-shaming of crypto manipulators
The Acting Director General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, is advocating for a new cryptocurrency measure that aims to remove the naira as a currency pair from cryptocurrency peer-to-peer platforms.
During a virtual meeting with the Blockchain Industry Coordinating Committee of Nigeria (BICCoN), he stressed the need to clean up the virtual assets space from illegal trading activities and safeguard the integrity of the Nigerian capital market.
Agama emphasized the Commission’s readiness to enforce the Investments and Securities Act of 2007 vigorously, ensuring that all market participants adhere to the established legal frameworks, despite the technological advances in digital assets.
These actions represent a bold move by the new Director-General towards strict regulation of the cryptocurrency space.
This move indicates how stringent his approach to cryptocurrency might be. Unlike the previous SEC, which offered an olive branch, this administration may issue guidelines that could make trading crypto more difficult in Nigeria.
Agama noted that the recent surge in peer-to-peer (P2P) crypto trading has reportedly impacted the Naira’s exchange rate, prompting the SEC to consider delisting the Naira from P2P platforms to curb market manipulation.
A statement from the Commission read:
Agama highlighted the necessity of a cooperative approach to address these challenges, advocating for a regulatory environment that supports innovation while protecting national economic interests.
The SEC boss also said that the commission is in the process of developing inclusive regulatory guidelines for the digital asset sector.
These guidelines are being crafted with input from various stakeholders and will cover a broad spectrum of crypto-related activities, including wallet services, digital asset custody, fund management, and more.
The aim is to create a well-regulated digital asset marketplace that contributes to Nigeria’s economic progress.
In the statement, Agama was quoted, saying:
In his concluding remarks, Agama called for the cryptocurrency community’s support in identifying and addressing any harmful practices within the market.
He stressed the importance of collaboration and openness in achieving a transparent and thriving digital asset environment, reflecting the government’s commitment to fostering a conducive atmosphere for the burgeoning fintech sector.
In February 2024, Binance, a widely used crypto exchange with over 170 million users worldwide, disabled its peer-to-peer feature for Nigerian users.
Recently, Nigeria’s National Security Adviser (NSA) classified cryptocurrency trading as a national security issue. Following this, the Central Bank of Nigeria (CBN) directed four fintech startups operating in the country—Opay, Moniepoint, Paga, and Palmpay—to block the accounts of customers engaging in cryptocurrency transactions and to report those transactions to law enforcement agencies.
Earlier, the Economic and Financial Crimes Commission (EFCC) had obtained a court order to freeze at least 1,146 bank accounts belonging to various individuals and businesses allegedly engaged in illicit foreign exchange dealings.
