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The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has called on the newly inaugurated board of the Securities and Exchange Commission (SEC) to address the complexities of regulating cryptocurrencies and ensure stringent oversight to maintain market integrity in the capital market.
In a statement made available to The PUNCH on Monday, Edun emphasized during the board’s inauguration in Abuja that the SEC must be proactive in tackling the challenges posed by fast-evolving financial technologies, particularly cryptocurrencies.
“The SEC board should be willing to accept the challenge of regulating these new areas, particularly crypto, as they are fast-moving and complex,” Edun stated. He warned that companies might exploit minimal registration requirements to falsely claim they are licensed and regulated, urging the SEC to ensure strict oversight to preserve market integrity.
“You must also watch out for regulatory arbitrage, where a company with a portfolio of huge, sophisticated transactions now comes and takes the lowest level of registration just so they can say they are licensed and regulated,” Edun added. “Ensure top-notch corporate governance practices, quickly identify and disclose conflicts, and adhere to global best practices. Do not become stumbling blocks for those awaiting processes and approvals.”
Edun urged the SEC board members to adopt innovative strategies to regulate the country’s capital market. He highlighted the rapid development in areas such as artificial intelligence, digital currency, and overall digital transitions, stressing the necessity for the SEC to be knowledgeable and proactive.
“The top minds are gravitating towards finance and technology,” Edun stated. “Unlike basic industries with settled technologies, the financial sector is rapidly evolving with innovations in fintech, AI, and crypto. To provide necessary approvals and guidance, the SEC must stay informed and adaptable.”
Responding, the Chairman of the SEC board, Mairiga Katuka, assured the minister that the board would leverage its collective expertise, innovation, and passion to drive growth. Katuka expressed optimism about Nigeria’s future economic outlook, citing reforms by the current administration that are driving economic growth.
“The nation’s future economic outlook appears positive, driven by reforms put in place by the current administration, including robust inflation management, social protection, macroeconomic stability initiatives, and improved private sector development. These initiatives would undoubtedly engender economic growth,” Katuka added. He emphasized that with diligence, integrity, and a shared sense of purpose, the board would contribute to a more prosperous and resilient financial ecosystem.
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