SEC to Monitor Crypto Transactions in Nigeria: Regulatory Framework to be Expanded

The Securities and Exchange Commission (SEC) in Nigeria has announced its intentions to closely monitor crypto transactions in the country. This move comes as part of an effort to expand the regulatory framework to better match modern circumstances, particularly in the rapidly growing cryptocurrency market.

One of the key aspects of this initiative is the monitoring of Virtual Assets Service Providers (VASPs), which includes cryptocurrency ATMs, exchanges, P2P platforms, custodians, and others. The SEC will now require these entities to submit weekly and monthly trade statistics, as well as comply with various reporting requirements.

The SEC is also introducing a new program called the Accelerated Regulatory Incubation Program (ARIP) to facilitate the onboarding of VASPs. This program will require participants to submit quarterly financials, compliance reports, and address any issues related to misconduct, fraud, or operational incidents.

Nigeria is home to one of the largest P2P cryptocurrency markets in the world, with billions of dollars in transactions taking place each year. Sen. Ihenyen, a blockchain and virtual assets expert, believes that Nigeria can no longer afford to ignore the potential of digital assets and must work towards regulating the industry for consumer protection and investor safety.

The move to regulate cryptocurrencies has also received support from the government, with the newly established SEC board tasked with overseeing the regulation of digital assets. However, there are concerns about the impact of leading blockchain ecosystem Binance on the country’s economy, with calls for stricter regulation to prevent potential harm.

Overall, the SEC’s decision to monitor crypto transactions in Nigeria reflects a growing recognition of the importance of regulating the cryptocurrency market to ensure transparency, security, and investor protection.