SEC to Monitor Weekly Cryptocurrency Transactions After Suspending Binance Services, Others
- The Securities and Exchange Commission (SEC) has expressed its intention to monitor crypto transactions in Nigeria
- It is understood that the move aims to expand the regulatory framework to align with modern circumstances
- One of the largest peer-to-peer (P2P) bitcoin marketplaces in the world is located in Nigeria
The weekly and monthly trade statistics of Virtual Assets Service Providers (VASPs), including cryptocurrency automated teller machines (ATMs), exchanges, P2P platforms, custodians, and others is set to be monitored by the Securities and Exchange Commission (SEC).
Source: Getty Images
The SEC shared insights on this in its recently released document titled: Framework on Accelerated Regulatory Incubation Program for the Onboarding of Virtual Assets Service Providers (VASPs) and other Digital Investments Service Providers (DISPs).
What is changing?
The SEC is changing its regulations on digital asset issuance, offering platforms, exchanges, and custodies in order to organise the nation's cryptocurrency ecosystem.
Read also
Disconnection, N2,000/day: NERC to fine DisCo for overbilling electricity consumers, others
The goal of the modification is to broaden the regulatory framework to reflect contemporary conditions.
A dedicated window for onboarding VASPs is part of the arrangement, which is known as the "Accelerated Regulatory Incubation Programme (ARIP)."
Speaking on its ARIP, SEC said:
“ARIP participants shall submit to the Commission the following: Weekly and monthly trading statistics (where applicable) and all reporting requirements.
“They shall submit quarterly financials as well as compliance reports to demonstrate compliance with conditions imposed by the Commission. Key issues arising from misconduct, fraud, or operational incident reports and, if any, measures taken by the participant to address such incidents.
“They shall also submit actions or steps taken to address customer complaints, emergent risks, or other issues relevant to Commission’s assessment of applicable regulatory requirements; and any other relevant matters.”
Nigeria among biggest cryto markets globally
Nigeria is home to one of the world's biggest peer-to-peer (P2P) cryptocurrency markets. Global blockchain platform Chainalysis reports that during July 2022 and June 2023, the amount of cryptocurrency transactions in the nation was $56.7 billion.
Giving further breakdown, the platform said this means $1.09 billion was recorded every week.
Sen. Ihenyen, lead partner and head of Infusion Lawyers' blockchain and virtual assets practice, claimed Nigeria can no longer afford to continue putting digital assets underground for evident security and economic reasons.
He explained that the industry will benefit from the CBN's acknowledgment of the SEC's regulatory role in the digital asset area.
He said:
“Our regulators will now work together to ensure consumer protection and investor safety,” Ihenyen further said.
Earlier, Wale Edun, the minister of finance and coordinating minister of the economy, assigned the newly established SEC board the duty of handling the intricacies of regulating cryptocurrencies.
“The SEC board should be willing to accept the challenge of regulating these new areas, particularly crypto, as they are fast-moving complex areas,” he said.
Presidency speaks on banning binance
Legit.ng also previously reported that Bayo Onanuga, aide to President Bola Tinubu, said if Nigeria fails to clamp down on Binance, the world's leading blockchain ecosystem will destroy the economy of the country.
Onanuga said this in an interview on Channels Television’s 'Politics Today' on Wednesday, February 28, 2024.
The presidential aide accused Binance of ‘just fixing the rate’ and contributing to the current unpalatable economic situation in Nigeria.
Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.
PAY ATTENTION: Stay Informed and follow us on Google News!
Source: Legit.ng
