May 6, (THEWILL) – The Securities and Exchange Commission (SEC) has unveiled plans by the Commission to delist the Naira from P2P (peer-to-peer) cryptocurrency trading platforms.
The Ag Director General of the Commission, Dr. Emomotimi Agama, who disclosed this, said the move to delist the naira from P2P platforms was aimed at addressing the manipulation of the local currency’s value in the foreign exchange market.
P2P lending platforms match borrowers with individuals or groups of investors who are willing to lend money. The P2P marketplace manages the application process, moves the loan through underwriting and evaluates the level of risk the borrower poses.
Agama, who spoke on Monday during a virtual meeting with the Blockchain Industry Coordinating Committee of Nigeria (BICCoN), the umbrella body of all major blockchain and cryptocurrency Associations in Nigeria, said 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.
The SEC boss also reiterated the commitment of the SEC to rid the Virtual Assets space of illegal trading activities.
“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.
“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,” he said.
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