The Security and Exchange Commission (SEC) has said it will continue to engage players in the Fintech space and support them to operate lawfully in a bid to ensure the delivery of safe products and services without stifling innovation.
This is the outcome of the meeting of the Capital Market Committee (CMC) of the Commission.
Briefing journalists on the outcome the meeting which was held virtually on Thursday in Abuja, SEC’s Director General, Mr. Lamido Yuguda said the Commission recognizes the impact of FinTechs on capital market activities, assuring that it remains committed to their development.
“Let me say that the SEC remains very supportive of fintechs. We have invested so much in developing a framework for supporting fintechs in the various areas and fintechs are acting in areas of crowd funding, investment advice and cryptocurrencies and the like.
“I therefore encourage FinTech firms to approach the Commission for due registration and desist from operating illegally,” he said.
The SEC helmsman said the Commission is also mindful of developments in the crypto asset space adding that following initial warnings to the public, the SEC undertook a process to further understand this class of assets, including setting up Fintech and Blockchain Committees and releasing a “Statement on Digital Assets and their Classification and Treatment” in September, 2020.
“Subsequently the CBN directed its regulated institutions to close bank accounts of crypto exchanges to protect the financial system from abuse. But because of the lack of access to commercial bank accounts, we had to suspend our own guidelines of September 2020, the implementation of that circular is suspended until these operators are able to have access to Nigerian bank accounts.
“We are in discussions with the CBN on how to better understand and regulate the market, given the need to take advantage of the emerging innovations while protecting investors and the financial system,” he further said.
The SEC boss insisted that the Commission will not hesitate to sanction Capital Market Operators who frustrate the e-dividend mandate process.
“In the same vein, registered CMOs are advised to refrain from providing any form of support to unregistered entities operating unlawfully within our market, as such action would not be condoned. Furthermore, we urge CMOs to improve on their level of compliance, timeliness and correctness of disclosures and other filings made to the Commission”.
