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The Securities and Exchange Commission (SEC) has identified regulatory uncertainty, security concerns, and financial literacy as serious threats to the use of cryptocurrencies in the country.
This was disclosed by the Director-General of the institution, Emomotimi Agama, at the 2024 Annual Conference of the Association of Capital Market Academics of Nigeria (ACMAN) on Thursday in Abuja.
He said the Nigerian cryptocurrency market is currently estimated to be worth over $400 million, with a large portion of the population involved in cryptocurrency trading and transactions.
Religion said: ‘The lack of a comprehensive regulatory framework has created uncertainty, which can deter investors and innovators. Cybersecurity threats, including hacking and fraud, pose significant risks.
“Most people do not have adequate financial literacy, making them vulnerable to fraud and risky investments.”
He said crypto assets present significant opportunities and challenges for the Nigerian economy, noting that a balanced regulatory approach is critical to harnessing their benefits while mitigating risks.
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“Collaborative efforts from regulators, industry stakeholders, and the public are critical to developing effective regulation. I encourage continued dialogue and cooperation to ensure a safe and innovative financial ecosystem,” the SEC chief added.
He noted that the cryptocurrency market volume in Nigeria will reach $52.5 million by 2028, indicating a 12.66% increase between 2024 and 2028.
According to Agama, despite facing economic challenges, the country has emerged as one of the leading nations globally in terms of crypto adoption and transaction volume.
“Reports show that Nigeria’s crypto transaction volume reached $56.7 billion between July 2022 and June 2023, representing nine percent year-on-year growth.
“The country’s crypto market is estimated to be worth more than $400 million, with a large portion of the population involved in cryptocurrency trading and transactions,” he concluded.
By: Babajide Okeowo
SEC identifies regulatory uncertainty, insecurity, more as banes for Nigeria’s cryptocurrency market appeared first on Latest Nigeria News | Top News from Ripples Nigeria.
