*Report indicates several unsuspecting Nigerian investors continue to lose money to cybercriminals, who also appear to take advantage of the country鈥檚 lack of laws regulating cryptocurrencies

Isola Moses | 绿帽献妻

In order to determine the best ways to regulate Cryptocurrency investments and protect cryptocurrency investors in the country, Nigeria鈥檚 Securities and Exchange Commission (SEC) has set up a Financial Technology (FinTech) division 鈥渢o study crypto investments.鈥�

绿帽献妻 gathered Mr. Lamido Yuguda, Director-General of SEC, disclosed this development in an interview.

Yuguda explained that the study鈥檚 findings would help inform the securities regulator in Nigeria of the best ways to regulate cryptocurrency, should the Central Bank of Nigeria (CBN) February 6, 2021, directive be lifted on crypto operations in the economy.

Cryptocurrencies聽 聽Photo: Bitcoin.Com

However, Director-General of SEC did not provide a timeframe for issuing regulations or state when the Commission expects the CBN鈥檚 directive to be lifted, Bitcoin.Com report stated.

Nonetheless, he said that his organisation is eager to come up with crypto regulations.

鈥淲e are looking at this market closely to see how we can bring out regulations that will help investors protect their investment in blockchain,鈥� stated Yuguda.

It is also noted that Nigeria continues to be an ideal hunting ground for crypto scammers. Report further indicated that several unsuspecting Nigerian investors continue to lose money to criminals who also appear to take advantage of the country鈥檚 lack of laws regulating cryptocurrencies.

In a way to protect investors in the market, Nigerian regulators like the SEC have issued warnings while the CBN has gone as far as blocking the crypto industry鈥檚 access to the banking ecosystem in the West African country.

Rationale behind regulation of crypto accounts, transactions

Some Nigerian currency enthusiasts believe that the reported continuing depreciation of Naira is the real reason behind CBN and other regulators鈥� desire to control the crypto industry, report said.

In other words, such advocates have cited the persistent shortages of Foreign Exchange (Forex) versus the rising demand are blamed for accelerating the Naira鈥檚 decline against major currencies.

Cryptocurrencies are another way individuals can preserve value outside of the faltering naira.

In response to this worsening situation in the Nigerian economy, authorities have reportedly imposed restrictions both on cryptocurrency and non-crypto entities like the Bureau de Change operators.

Besides, the Bankers鈥� Bank took action against six FinTech companies after they purportedly violated provisions of their operations licences recently.

Despite the CBN鈥檚 hardline approach, it was learnt that Mr. Yuguda insists SEC desires to 鈥渨ork with FinTech firms to boost the marketing of domestic securities to prevent capital flight.鈥�

鈥淪EC is looking to boost savings through investment schemes, which currently have over $9.7 billion under management split between public and private fund managers,鈥� he added.