Nigerian SEC Establishes a Special Fintech Unit for Studying Crypto Investments

The Nigerian Securities and Exchange Commission, the country’s financial market regulator, has set up a fintech unit to study crypto-related investments and products, which will help the regulator assess the feasibility of establishing a regulatory framework on crypto assets.

Lamido Yuguda, the director of Nigerian SEC, said:

"We are looking at this market closely to see how we can bring out regulations that will help investors protect their investment in blockchain." But he didn't give a specific deadline for implementing regulations for the country's crypto sector.

However, the head of the SEC clarified that the watchdog would proceed with regulatory frameworks once the Nigerian banking system allows cryptocurrencies.

Yuguda also stated in an interview that the SEC had been in talks with the Central Bank of Nigeria (CBN) as they're preparing the launch of the forthcoming CBDC, e-Naira. Last month, the CBN drafted a series of guidelines addressing domestic banks about the Nigerian central bank digital currency project. The document is aimed to detail the design and the operational structure of the coin, which is reportedly intended to be a legal tender in Nigeria.

Fazzaco reported earlier that Nigeria banned crypto payments at the beginning of 2021 and announced to pilot digital currency​ in October.