Fintech will Enhance Financial Inclusion - SEC

Proshare - Facebook Proshare - Twitter Proshare - Linked In Proshare - WhatsApp

Tuesday, February 23, 2021 / 3:11 PM / by SEC Nigeria / Header Image Credit: iStock

Proshare Nigeria Pvt. Ltd.

The Securities and Exchange Commission has stated that it is committed to enhancing financial inclusion in the country through technology. 


Director General of the SEC, Mr. Lamido Yuguda stated this at the joint session of the Senate Committee on Banking, Insurance and other Financial Institutions, Capital Market and ICT and Cyber Crime in Abuja, Tuesday. 


Yuguda said the SEC recognizes the disruption of FinTech in the financial industry and aims to create an enabling regulatory environment that would ensure a balance between investor protection and technological advancement. 


He said, "We believe that FinTech would not only bring about efficiency to the capital market but would also serve as a veritable tool for advancing Nigeria's Financial Inclusion agenda. 


"However, there is a need to develop an appropriate regulatory framework to ensure the safety of innovation to investors and preserve market integrity.


The SEC boss said to develop an appropriate regulatory framework, regulators need to understand the crypto asset space to be better positioned to address identified risks. 


He said the SEC will advance efforts towards developing a comprehensive regulatory framework that ensures that operators in the crypto asset space conduct their activities in a manner that protects investors and maintains financial system stability.


"The SEC will continue to monitor developments in the digital asset space and further engage/collaborate with all critical stakeholders, including the CBN, to create a regulatory structure that enhances economic development while promoting a safe, innovative and transparent capital market" he added. 


According to Yuguda, the SEC’s approach is consistent with the approaches of several securities regulators around the world as in the United States of America, the US SEC requires platforms that offer trading in digital asset securities and operate as exchanges to register or seek to be exempted from registration. 


"In the United Kingdom, the Financial Conduct Authority (FCA) requires firms that carry on specified activities, by way of business, involving a crypto asset, to be authorized. Crypto assets are viewed as financial products in South Africa and the Financial Sector Conduct Authority (FSCA) requires persons carrying out associated activities to be regulated. 


"In Malaysia, operators of digital asset platforms are required to be approved by the Securities Commission (SC) as recognized market operators. Several other securities regulators have taken similar positions".


Speaking earlier, the Chairman of the Joint Committee, Senator Uba Sani said the Committee is on a fact-finding mission in the interest of Nigerians and the nation’s economy.


Sani said the Committee would look at enabling laws in line with global best practices. 


He said, "We shall look at the position of the CBN who have said cryptocurrencies are very volatile and supports insurgency. The Senate will always support innovation and the effective use of ICT for economic empowerment.


'We are aware of the damage it has done and are poised to protect our economy and ensure that our people benefit where necessary".

Proshare Nigeria Pvt. Ltd. 

Related News - Fintech

1.       CBN Issues Regulatory Framework for Open Banking in Nigeria

2.      SEC, CBN and NITDA Collaboration Will Strengthen Risk Management of Digital Assets

3.      Why Africa is Considered the Best Place for Adoption of Decentralized Finance (DeFi)?

4.      African Fintech Report 2020: Africa's Mobile Subscription Penetration at 80%

5.      FintechNGR 2020 in Retrospect

6.      Four Cornerstones of Payments in the Digital Age

7.      Categorisation of Nigerian Payment Systems - What It Means For Fintechs

8.     Fintech Nigeria Social Meet 7.0 Explores Digital Acceleration For 2021

9.      FintechNGR Social Meet 7.0 Scheduled to hold on December 09, 2020

10.  FinTech Firms Reported 13% Increase YoY in Transaction Numbers in H1 2020

Proshare Nigeria Pvt. Ltd.

Related News - Data and Financial Inclusion

1.       Tracking and Using Data for Decision Making as a Business Owner

2.      Data Visualization Training by Data Science Nigeria to Commence from February 27, 2021

3.      First Bank Deepens Financial Inclusion with Largest Agent Banking Network, Empowers SMEs

4.      FCMB Deepens Financial Inclusion, Opens Ultra-Modern Cash Centre At Ikorodu, Lagos

5.      Ecobank MD, Others List Opportunities in Digital Financial Inclusion

6.      16.8% Financially Excluded Nigerian Adult Must be Brought into the Inclusion Bracket by 2020

7.      Leveraging Non-Interest Finance for Financial Inclusion

8.     Ecobank, Vanguard Announce New Date for Digital Financial Inclusion Summit

9.      PSBs as the Key to Driving Financial Inclusion?

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

Related News