Dr. Emomotimi Agama, the SEC Director General
The Securities and Exchange Commission (SEC) has underscored its commitment to enhancing youth participation in Nigeria’s capital market through the recent approval-in-principle granted to two cryptocurrency exchanges. This move aligns with the Commission’s broader objective of involving the younger demographic in financial markets.
Dr. Emomotimi Agama, the SEC Director General, made this announcement during a meeting in Abuja on Wednesday. He emphasized that the initiative is in response to President Bola Ahmed Tinubu’s call to engage the country’s youth and integrate them into economic activities.
The SEC recently approved Busha Digital Limited and Quidax Technologies Limited, marking a significant step towards fostering innovation in the financial sector. Dr. Agama highlighted the importance of adapting to global trends, stating, “As a forward-looking institution, the SEC is committed to ensuring Nigeria remains competitive internationally by embracing emerging financial technologies.”
Dr. Agama explained that the SEC is focused on nurturing talent and addressing potential challenges associated with digital asset classes. He assured that the Commission’s goal is to include young Nigerians in the capital market while maintaining rigorous regulations to protect investors.
The SEC’s approach involves careful oversight to mitigate risks to both the economy and investors. The Commission’s digital assets exchange program, guided by its Virtual Assets Service Providers (VASP) Regulation, aims to understand and regulate crypto exchanges and virtual financial service providers effectively.
Dr. Agama further detailed the SEC’s strategy, which includes a Regulatory Incubation Programme designed to assess new fintech platforms and their associated risks. This program has evolved into an Accelerated Regulatory Incubation Programme to meet the needs of institutions seeking SEC regulation.
He clarified that while no exchanges have been fully licensed yet, the approval-in-principle allows the SEC to study these entities closely. This approach ensures that the exchanges operate within established regulations, safeguarding the public and the financial system from potential risks.
“The SEC’s role is to provide guidance and regulations to ensure these companies operate smoothly while protecting investors and maintaining economic stability,” Dr. Agama concluded.
