The Federal Government is planning to delist the Naira from the P2P space to prevent manipulations and to ensure a fair and stable currency market. A strategic move to protect the value of Naira.
The Ag Director General, Securities and Exchange Commission, Dr. Emomotimi Agama, revealed that they made the plan to remove the Naira from P2P cryptocurrency trading to prevent the manipulation that’s currently taking place on the platform.
According to a statement from the Commission on Monday, Dr. Agama discussed this during a virtual meeting with BICCoN, which is the umbrella organization for blockchain and cryptocurrency associations in Nigeria.
He pointed out that the recent concerns regarding crypto P2P traders and their perceived impact on the exchange rate of the Naira have underscored the need for collective action and dialogue within the financial market ecosystem.
He therefore enjoined participants in the crypto space to be patriotic enough to name and shame those that are involved in disrupting the markets negatively.
He said: “I want to seek your cooperation in dealing with this as we roll out in the coming days the regulations that would take control of these areas. We want to assure that this management will ensure that people or institutions that require registration with the SEC are quickly licensed. We assure you that we will give guidance when necessary and do well to streamline the processes to make it less difficult.
“We ask that those involved in sharp practices that undermine national interest should cease and desist. It is in our interest as a people to protect what belongs to us. We encourage you to reach out to us by naming and shaming the bad actors. Together, I am confident that we can weed out bad actors and harness the immense potential of this progressive technology for the benefit of all Nigerians in tandem with this government’s renewed hope agenda” he added.
He noted that in a bid to rid the Virtual Assets space of illegal trading activities, the Commission will go all out to act decisively to uphold the integrity of the capital market and protect the interests of all investors.
Agama stated that the SEC Nigeria will not hesitate to utilize all the powers within its mandate to handle issues that are negative and pose a threat to national interest saying that the Commission has come as a partner to seek collaboration in making sure that the capital market community is one that is respected globally for decency and fair play.
He said: “There are basic practices as enshrined in the Investments and Securities Act 2007 and we expect that everyone will abide by those rules. Some may say there are no rules to play by, but do not forget that we have the Investments and Securities Act 2007 that some actions by participants today may be violating, hence the law is the law irrespective of the technology used.
“However, for the specific Digital Asset regulatory regime that many have been calling for, we want to assure you that we are working tirelessly to establish an accommodating regulatory guideline for digital assets. The SEC as your regulator is desirous to work with you by providing a level of assurance that is needed by all that are operating within the rules of the market”.
In his remarks, the Chairman of the Fintech Association of Nigeria Dr. Babatunde Oghenobruche Obrimah commended the Director General for his bold steps and the relationship with the ecosystem and pledged their commitment to work with the DG and grant him all the support that will help him succeed in sanitizing the virtual ecosystem.
On their part, BICCoN requested the setting up of a working group to tackle the various challenges facing the crypto space and in a bid to move the market forward.