Nigeria's Finance Minister urges SEC Board to tackle cryptocurrency regulation

Nigeria's Finance Minister, Wale Edun, has called on the newly inaugurated Securities and Exchange Commission (SEC) board to address the challenges of regulating cryptocurrencies in the country. During the board's inauguration in Abuja, Edun emphasized the need for stringent oversight to maintain market integrity in the capital market.

The minister described cryptocurrencies as a "fast-moving" and "complex" sector, requiring careful regulation. He warned that crypto entities could potentially exploit Nigeria's minimal registration requirements and urged the implementation of robust corporate governance practices.

Edun also highlighted the importance of staying informed and proactive in the face of rapid developments in digital currency, artificial intelligence, and overall digital transitions. He cautioned against regulatory arbitrage, advising the SEC to "quickly identify and disclose conflicts and adhere to global best practices".

The newly appointed seven-member SEC board, approved by President Bola Tinubu on April 19, 2024, includes SEC chairman Mairiga Katuka and director general Emomotimi Agama. In response to the minister's call, Katuka assured that the SEC would work towards creating a more prosperous and resilient financial ecosystem.

This push for cryptocurrency regulation comes as Nigeria explores the use of emerging technologies to strengthen its economy. Recently, the National Information Technology Development Agency announced plans to deploy research centers focused on key technologies like Blockchain and AI.

The minister's call for improved crypto regulations occurs against the backdrop of Nigeria's ongoing legal issues with crypto exchange Binance and its executive Tigran Gambaryan, who has been detained by the Economic and Financial Crimes Commission since February.