Minister says FG needs to regulate crypto industry
The Federal Government needs to regulate the cryptocurrency industry, Clem Agba, the Minister of State Budget and National Planning has said.
Agba speaking during his keynote address at the event, called ‘Technext coinference’, that was held in Lagos, with the theme ‘Reimagining crypto as the future of finance’, said the government is optimistic about the numerous possibilities the crypto industry provides.
He said cryptocurrencies could be the biggest disruptor in finance but the government needed to regulate the industry.
“Regulations of the industry don’t mean a giant hammer slamming down on the activities going on in an industry but rather to optimise conditions for growth, tailored towards the industry,” he said.
According to him, there is a need for the creation of a new regulatory body to oversee the regulation of crypto activities in the country.
Agba said, “Nigeria’s SEC [Securities and Exchange Commission] is currently in discussions with CBN [Central Bank of Nigeria] to enable better understanding and regulation of the crypto space.
“Nevertheless, it is also possible that our laws as they are today cannot explicitly stipulate who holds the power to regulate cryptocurrencies; maybe, there is a need for an additional body to play this role.”
According to him, cryptocurrencies fall under the jurisdiction of the central bank as it is assumed to be under the monetary policy of the country.
The Chief Executive Officer, Quidax, Buchi Okoro, said the central bank’s development of the eNaira was a step towards meeting stakeholders halfway and would encourage digital liquidity.
He added that cryptos could not replace fiat money, as both currencies could only collaborate.
According to the International Monetary Fund, the global boom of cryptocurrencies will pose new problems for financial stability.
The IMF said crypto assets would soon pose systemic financial stability in some countries as policymakers struggled to monitor risks.
In a report titled ‘Global crypto regulation should be comprehensive, consistent, and coordinated’, the IMF said some emerging markets and developing economies faced immediate and serious risks of currency substitution by crypto assets.
“Some emerging markets and developing economies face more immediate and acute risks of currency substitution through crypto assets, the so-called cryptoisation,” it said.
According to the IMF, there is a need for a global regulatory framework that provides a level playing field along the activity and risk spectrum of crypto assets.
