As the crypto market continues to evolve, regulators and industry stakeholders in Nigeria are calling for enhanced oversight and a focus on sustainable finance to drive economic development.

At the opening ceremony of World Investor Week (WIW) 2024 in Lagos, the Securities and Exchange Commission (SEC) highlighted the need for robust frameworks to protect investors in the face of digital finance’s rapid growth. Dr. Emomotimi Agama, Executive Commissioner of Operations at the SEC, emphasized the importance of balancing innovation with responsible regulation.

SEC Develops VASP Framework

The SEC has taken a proactive approach by developing a framework for regulating Virtual Asset Service Providers (VASPs) in Nigeria. This framework aims to mitigate risks such as fraud, money laundering, and market manipulation while fostering a conducive environment for innovation.

Focus on Sustainable Finance

The WIW 2024 event underscored the significance of sustainable finance in driving long-term value creation. Lagos State Governor Babajide Sanwo-Olu and FMDQ Group CEO Bola Onadele emphasized the need for investments in green technologies, renewable energy, and socially responsible businesses to address global challenges.

Nigeria’s Active Crypto Market

Nigeria remains a hotspot for crypto transactions, ranking among the top five globally in peer-to-peer trades. However, this growth brings with it the need for robust regulations to protect investors from the inherent risks associated with the crypto market.

Key Takeaways:

• Enhanced Regulation: The SEC calls for stronger regulations to protect investors in the crypto market.
• Sustainable Finance: Industry leaders emphasize the importance of sustainable investments for long-term economic development.
• VASP Framework: The SEC has developed a framework to regulate virtual asset service providers in Nigeria.
• Nigeria’s Active Crypto Market: Nigeria remains a major player in the global crypto landscape.