DIGITAL EXCHANGES TO BOOST YOUTH INVOLVEMENT IN CAPITAL MARKET
Summary:
- SEC's Approval: The Securities and Exchange Commission (SEC) has granted approval-in-principle to two cryptocurrency exchanges, Busha Digital Limited and Quidax Technologies Limited. This move aims to enhance youth engagement in Nigeria's capital market.
- Director-General's Statement: Emomotimi Agama, SEC's Director-General, highlighted that this initiative aligns with President Bola Tinubu's focus on involving young Nigerians in the financial sector. Agama emphasized the importance of including the youth in capital markets due to their significant interest in digital assets.
- Regulatory Approach: The approval is part of SEC’s broader strategy to manage risks associated with digital assets while fostering market growth. Agama assured that the SEC is implementing regulations to protect investors while allowing for innovation.
- Incubation Stage: The approval is currently in an incubation phase, where the SEC will closely monitor the platforms to ensure compliance with regulatory standards before granting full approval.
- Goals and Benefits:
- Innovation and Protection: The SEC aims to balance fostering innovation with safeguarding investors. The introduction of cryptocurrency exchanges into the regulated market is expected to create new opportunities for younger Nigerians.
- Regulatory Incubation Programme: This program allows the SEC to observe and assess the risks these companies might pose, ensuring they meet necessary regulatory guidelines.
- Additional Initiatives:
- Sound Box Initiative: The SEC has introduced a "sound box" initiative to better understand the fintech ecosystem and manage associated risks.
Summary:
- SEC's Approval: The Securities and Exchange Commission (SEC) has granted approval-in-principle to two cryptocurrency exchanges, Busha Digital Limited and Quidax Technologies Limited. This move aims to enhance youth engagement in Nigeria's capital market.
- Director-General's Statement: Emomotimi Agama, SEC's Director-General, highlighted that this initiative aligns with President Bola Tinubu's focus on involving young Nigerians in the financial sector. Agama emphasized the importance of including the youth in capital markets due to their significant interest in digital assets.
- Regulatory Approach: The approval is part of SEC’s broader strategy to manage risks associated with digital assets while fostering market growth. Agama assured that the SEC is implementing regulations to protect investors while allowing for innovation.
- Incubation Stage: The approval is currently in an incubation phase, where the SEC will closely monitor the platforms to ensure compliance with regulatory standards before granting full approval.
- Goals and Benefits:
- Innovation and Protection: The SEC aims to balance fostering innovation with safeguarding investors. The introduction of cryptocurrency exchanges into the regulated market is expected to create new opportunities for younger Nigerians.
- Regulatory Incubation Programme: This program allows the SEC to observe and assess the risks these companies might pose, ensuring they meet necessary regulatory guidelines.
- Additional Initiatives:
- Sound Box Initiative: The SEC has introduced a "sound box" initiative to better understand the fintech ecosystem and manage associated risks.