With several countries already working on the creation of a regulatory framework for companies operating in the crypto space, Nigeria’s primary financial markets regulator will not be left behind.
According to the local news agency, Pulse, the country’s Securities and Exchanges Commission (SEC) has appointed a committee to work on a “blockchain and virtual financial assets framework" for the Nigerian capital market.
Citing a document seen by Business Insider SSA, a parent company to the news agency, the report mentioned that the committee dubbed ‘FinTech Roadmap Working Group’ is looking to create a report that will form the basis for a framework that ensures adequate investor protection, financial market integrity, and financial stability.
Ade Bajomo, an Executive Director for Information Technology and Operations at home-based Access Bank Plc is the leader of the committee, while part of their assignment will include ‘comparing global practices on regulatory taxonomy and classification of cryptocurrencies and recommend a suitable model for adoption’ in the country.
The Working Group will also advise the country’s SEC on approaches and guidelines on how to regulate the fintech industry and have until the end of November to deliver a report regarding their findings.
Following the submission of the report too, the SEC will also “work with other regulatory agencies to create clear and specific licensing regimes for different fintech businesses in Nigeria,” the update confirmed.
Notably, the stance adopted by the Nigerian SEC regarding the emergence of cryptocurrencies differs from that of their counterparts in Burundi. Stmarket.co reported last week that Burundi banned all forms of cryptocurrency trading activities citing a lack of investor protection for citizens.