SEC identifies regulatory uncertainties, insecurity, others as bane of Nigeria’s cryptocurrency market

The Security and Exchange Commission (SEC) has identified regulatory uncertainty, security concerns, and financial literacy as serious threats to cryptocurrency use in the country.

The agency’s Director-General Emomotimi Agama, stated this at the 2024 Annual Conference of the Association of Capital Market Academics of Nigeria (ACMAN) on Thursday in Abuja.

He said Nigeria’s cryptocurrency market is currently estimated to worth over $400 million, with a significant portion of the population involved in cryptocurrency trading and transactions.

Agama said: ‘The lack of a comprehensive regulatory framework has created uncertainty, which can deter both investors and innovators. Cybersecurity threats, including hacking and fraud, pose significant risks.

“A substantial portion of the population lacks adequate financial literacy, making them vulnerable to scams and risky investments.”

He said crypto assets present significant opportunities and challenges for Nigeria’s economy, lnoting that a balanced regulatory approach is essential to harness their benefits while mitigating risks.

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“Collaborative efforts from regulators, industry stakeholders, and the public are crucial for developing effective regulations. I encourage continued dialogue and cooperation to ensure a secure and innovative financial ecosystem,” the SEC chief added.

He noted that the volume of the cryptocurrency market in Nigeria would hit $52.5 million in 2028, indicating a 12.66% increase between 2024 to 2028.

According to Agama, despite economic challenges, the country has emerged as one of the leading countries globally in terms of crypto adoption and volume of transactions.

“Reports indicate that Nigeria’s crypto transaction volume reached $56.7 billion between July 2022 and June 2023, representing a nine percent year-over-year growth.

“The country’s crypto market is estimated to be worth over $400 million, with a significant portion of the population involved in cryptocurrency trading and transactions, ” he concluded.

By: Babajide Okeowo

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