Nigeria puts faith in new crypto-friendly regulator

Nigeria’s president appointed the new SEC Chair to regulate the capital market, bolster investor confidence, and advance economic development.

Nigeria’s blockchain stakeholders have expressed hope and confidence in the newly appointed Director-General of the Securities and Exchange Commission (SEC). The new SEC Chair’s pro-crypto background is seen as an added advantage for the local crypto industry. 

Nigerian President Bola Ahmed Tinubu has appointed Emomotimi Agama, the former managing director of the Nigerian Capital Market Institute (NCMI), as the new chair of the SEC.

This appointment aims to regulate the capital market, enhance investor confidence, and promote economic development.

In interviews with Cointelegraph, local crypto stakeholders shared their opinions about the new appointment.

Nathaniel Luz, CEO of Flincap — an over-the-counter crypto exchange — expressed his excitement about the appointment, saying that the Director-General’s favorable views on crypto will likely bring positive changes to the crypto sector.

Luz said that the community is looking forward to the new chair working together with startups to streamline their licensing process for operating crypto platforms in Nigeria.

With the government issuing licenses for crypto organizations this year, Luz believes assisting numerous crypto startups in obtaining these licenses will ensure compliance and operational stability for exchanges in the country.

Related: Nigeria’s central bank forced to deny claims of crypto account freeze

Similarly, Lucky Uwakwe, chair of the Blockchain Industry Coordinating Committee of Nigeria (BICCoN) and founder of SaBi Exchange, described the appointment as a “wise decision,” considering the new Director-General’s wealth of experience in blockchain and the capital market.

According to Luz, the new leader needs to clearly state that cryptocurrency is not prohibited in Nigeria. Given recent developments and uncertainties surrounding cryptocurrency regulations in the country, stakeholders are seeking a clear declaration from the leadership to confirm the legality of crypto activities. Luz said:

“We expect that his administration will separate the baby from the bath water and show that the crypto industry has several exciting benefits for the country. We need to prove to the whole world that we are open for crypto business despite the issues that some exchanges might have experienced in the country.”

In February, the Nigerian government used the country’s telecommunication providers to prevent local crypto users from accessing the websites of various crypto exchanges, such as Binance, OctaFX and others.

Authorities then accused Binance of illegally moving $26 billion out of the country and invited the firm to send representatives to discuss the issue.

Two Binance staff were subsequently detained and charged with five counts related to money laundering after meeting with Nigerian officials.

One of them, Nadeem Anjarwalla, escaped custody and was tracked down in Kenya, where he faces extradition.

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