SEC vows to maintain standards in crypto regulations

The Director-General of the Securities and Exchange Commission, Emomotimi Agama, has reiterated the commission’s commitment to maintaining high standards in cryptocurrency regulations.

Agama made this disclosure at the recent BusinessDay Blockchain Conference in Lagos, emphasising that the capital market regulator will not compromise on its regulatory framework for cryptocurrencies.

In a video obtained by The PUNCH on Sunday, Agama said the SEC was open to feedback and suggestions from stakeholders but would not relax its standards to accommodate the interests of market players.

“If you cannot meet certain criteria, you will struggle with compliance, and I can tell you from my 30 years of experience in this market that non-compliance means failure.

“I understand your enthusiasm and zeal, but it is crucial to work together to achieve success. We are a listening commission, and we value your reasonable advice,” the SEC DG stated.

The regulator has faced criticism from crypto operators for its stringent regulatory measures.

They argued that those regulations create barriers to entry for many crypto firms, effectively limiting competition and innovation.

The SEC’s approach has included hefty penalties for non-compliance, such as fines reaching millions of naira for companies operating without proper registration.

On April 19, Agama replaced Lamido Yuguda, who had served as SEC DG since May 2020.

Upon assumption of office, the SEC DG in May announced that the naira would be delisted from all peer-to-peer cryptocurrency platforms.

At the time, Agama emphasised the need for collective action to address concerns regarding peer-to-peer trading and its impact on the national currency.

Speaking further at the conference, the DG urged crypto players and operators to focus on cooperation and maintaining high standards to build lasting institutions.

Agama noted that many have failed despite having innovative ideas due to a lack of collaboration and adherence to regulatory requirements.

He also highlighted the broader responsibility of individuals and institutions to prioritise national interests and protect Nigeria from external influences.

“It is crucial for you to act with the country’s well-being in mind to ensure long-term prosperity,” the DG stated.

He called on the players to act responsibly and prioritise the interests of Nigeria, despite the government’s actions being guided by sensitive, non-public information.

Agama emphasised the importance of safeguarding national interests and remaining cautious of external influences that may not align with Nigeria’s best interests.