The Nigerian financial regulator has set up a research division with the aim of regulating the crypto-asset industry. The new unit will conduct research on crypto-asset investments and products to produce guidelines to help protect investors.
Eight months after the Central Bank of Nigeria banned banks from serving crypto entities and investors, the Nigerian Securities and Exchange Commission has set up a FinTech unit to help make regulations for the digital asset industry.
According to CryptoPotato, the new unit will conduct research on crypto-asset investments and products to produce regulatory guidelines that will help protect investors. Speaking about the development, Lamido Yuguda, managing director of the institution, said, “We are looking closely at this market to see how we can enact regulations that will help investors protect their blockchain investments.” said.
Since the SEC considers all crypto assets to be “securities unless proven otherwise,” Yuguda added that once digital currencies are integrated into the Nigerian banking system, the institution will step up by enacting regulations.
Although the institution has just started its FinTech research unit, it announced its intention to regulate the crypto-asset space last year, six months before the Central Bank of Nigeria (CBN) ban. The financial watchdog said in September 2020 that it is well equipped to provide regulatory guidelines for the industry.