Nigeria’s Securities and Exchange Commission (SEC) has expressed caution over regulating Bitcoin, signaling a potential shift in the country’s approach to digital assets.
The development coincides with a lawsuit filed by a Nigerian Bitcoin advocate challenging government-imposed crypto restrictions.
Cryptocurrency education takes center stage in Nigerian SEC strategy
Dr. Momotimi Agama, the SEC’s Director General, indicated that the agency was not opposed to regulating Bitcoin and was open to exploring frameworks. This openness is aimed at integrating cryptocurrencies into the Nigerian financial system despite the SEC’s historical caution. The SEC’s primary objective remains investor protection and maintaining market integrity, and any move towards regulation would be aligned with these objectives.
“So clearly for us it is about making them understand, educating them more about cryptocurrency trading, digital asset trading and everything related to it. There are opportunities around that so let’s look at it and as such we will deal with anyone who does not comply with our regulations,” Agama said during his recent appearance on local television.
Read more: Cryptocurrency regulation in Africa: What we know so far
Just days after Agama’s comments, James Otudor, a well-known Bitcoin advocate, filed a lawsuit. The complaint names key government officials, including the presidency, the finance minister, and the attorney general.
Utudor’s legal challenge is over the Central Bank of Nigeria’s (CBN) crackdown on cryptocurrency transactions, which has created a difficult environment for cryptocurrency enthusiasts and businesses.
Furthermore, his lawsuit seeks to overturn these restrictions and calls for the establishment of a clear regulatory framework for digital assets in Nigeria. BeInCrypto reported that in addition to these restrictions, local officials have accused exchanges of not paying taxes despite Nigeria’s significant contribution to their revenue.
“The Complainant submits that the continued targeting of Nigerians who own and use cryptocurrencies constitutes a gross violation of their fundamental human rights,” Otudor said in his X (Twitter) post.
Learn more: How to protect yourself from inflation with cryptocurrencies
He also highlighted the importance of digital assets for financial inclusion in a volatile economy, highlighting how cryptocurrencies like Bitcoin can protect savings from inflation and enable international transactions. This is particularly relevant in the context of the devaluation of the naira and the shortage of foreign exchange. Thus, he advocated for Bitcoin and other cryptocurrencies to be recognised as unique financial instruments, urging regulation that reflects their distinct characteristics.
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