According to a Nigerian regulator, young people who are adopting cryptocurrencies are drawn to their secrecy, and many of them do not have bank accounts. However, the regulator also stated that the Securities and Exchange Commission (SEC) will continue to caution users about the potential risks of investing in this asset class.
'Secrecy of Crypto Usage' Drives Youth Cryptocurrency Adoption, Says Nigerian Regulator
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Crypto Cannot Be Caged
The Director General of Nigeria’s Securities and Exchange Commission, Emomotimi Agama, claims that the “secrecy of crypto usage” is driving youth adoption of crypto assets. However, Agama also acknowledges that many young people could be embracing crypto because they do not have bank accounts.
Speaking at the Annual Conference of the Association of Capital Market Academics of Nigeria, Agama implied that the adoption of crypto is happening because users are aware it cannot be caged.
“Some people don’t have bank accounts but they have a crypto wallet. Crypto is like air, can you cage it? No. What you can do is to build a risk management around it,” the SEC director general said.
According to a Nairametrics report, Agama cited a study suggesting that one-third of Nigerians own or use cryptocurrencies. Despite recognizing their popularity, Agama reportedly stated that the SEC will continue to caution users about the potential risks of investing in this asset class.
Regarding the regulation of Nigeria’s crypto industry, the SEC director general seemed to imply that the Commission is the sole regulator mandated to oversee this space. Agama, however, maintained that crypto asset regulation remains immature globally, including in the United States.
Meanwhile, during the same conference, Osita Izunaso, Chairman of the Senate Committee on Capital Market, emphasized the necessity of regulating the crypto industry for Nigeria to reap its benefits. He warned that without proper regulation, users would remain vulnerable to fraudsters.
Bello Hassan, Managing Director of the Nigeria Deposit Insurance Corporation, urged the SEC to prioritize sharing “unbiased information” about the risks associated with crypto trading.
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