- Wale Edun wants the SEC to be willing to accept the challenge of regulating these new areas, particularly crypto
- The SEC needs to be knowledgeable and flexible in order to provide the required approvals and direction
- Why crypto is a hot topic in Nigeria
The topic of cryptocurrency is a thorny one in Nigeria. And, the Minister of Finance, Wale Edun, thinks it's time to regulate the sector. So, he has told the country’s Securities and Exchange Commission (SEC) to rise to the challenge—study and understand the sector and bring stringent regulations to maintain its integrity.
Edun, who is also in charge of coordinating the entirety of Nigeria’s economy, conveyed this when he inaugurated the SEC’s new board in the country’s capital, Abuja.
“The SEC board should be willing to accept the challenge of regulating these new areas, particularly crypto,” he told the new board and charged them to discharge their duties responsibly.
While he asked the new board members to be strategic and innovative in their approach, he emphasized that "you must also watch out for regulatory arbitrage, where a company with a portfolio of huge, sophisticated transactions now comes and takes the lowest level of registration that they can just so they can say they are licensed and regulated.
“Ensure top-notch corporate governance practices, quickly identify and disclose conflicts, and adhere to global best practices. Do not become stumbling blocks for those awaiting processes and approvals.”
The SEC needs to be knowledgeable and flexible in order to provide the required approvals and direction, he said, adding that the financial sector is rapidly evolving with innovations in fintech, AI, and crypto, unlike basic industries with established technologies.
The chairman of the SEC board, Mairiga Katuka, promised the minister that his team would work in the country’s interest but failed to comment explicitly on the charge to regulate crypto in the country.
“The nation’s future economic outlook appears positive, driven by reforms put in place by the current administration, including robust inflation management, social protection, macroeconomic stability initiatives and improved private sector development. These initiatives would undoubtedly engender economic growth,” he added.
Is crypto banned in Nigeria?
Crypto is a hot topic in Nigeria. While there is no clear policy statement or directive banning crypto in the country, Nigerian authorities have come down heavily on crypto exchanges and traders.
At the moment, crypto websites are banned in Nigeria. If you are in Nigeria, you will not have access to exchanges like Binance, Coinbase, Bybit, KuCoin and more unless you use a virtual private network.
Recall that the Central Bank of Nigeria had directed banks in the country to freeze the accounts of customers who get involved in any kind of crypto transactions.
Also, the Nigerian government earlier this year clamped down on Binance: authorities arrested two of its executives and charged them, along with the company for money laundering and tax evasion.
KuCoin to charge 7.5% VAT on trading fees for Nigerian users
Meanwhile, TheRadar earlier reported that KuCoin, one of the leading crypto exchanges used by Nigerians, has said it would begin to charge a 7.5% Value Added Tax (VAT) fee on trades executed by its users whose Know Your Customer (KYC) is registered in Nigeria.
In a post on X, the exchange described it as a “regulatory update that impacts our users from Nigeria” and stated that the new measure will take effect from July 8th, 2024.
