When the Nigerian Securities Watchdog issued its first two Virtual Asset Service Provider (VASP) licenses in 2024, it seemed like the beginning of a new era. But it has not yet issued more licenses, and it now says that it is not in a hurry to give new approvals.
Speak at a recent industry event, the Securities and Exchange Commission Director General of Securities and Exchange (SEC), Immoometimi namerecognized that the agency has received dozens Applications From Vasps. But after issuing the first two, Sec observed some very important issues that we need to take care of, “he said.
“We have observed that any additional level of due diligence, what I call a level three due diligence, must happen before we can come out with the next provisional licenses. It may seem to have taken too long, more than necessary,” the Director General mentioned.
Sec Issued Provisional licenses to Quidax and Busha last year, its first under a new regulations. It followed a renovated degradation on offshore exchangethat had dominated the market for several years. The breakdown culminated in the shutdown of all other major exchanges of Nigerian, from Kukoin to Coin base (Nasdaq: Coins).
It did not end there: Sec and other agencies persecuted Binance for their role in the destabilization of the country’s forex sector, arrested and arrested their managers and submitted a $ 81.5 billion against the exchange.
In addition to the improved due diligence, the SEC chief blamed the delays on slow coordination between the agency.
“(Licensing) is in collaboration with other sister agencies (and) We have very little control over their processes, and so we wait and hope to hear from everyone within the shortest time frame to be more comfortable with licenses or provisional licenses that will be issued,” he said, who, as, as reported With the local outlet it was Rametrics.
SEC’s gentle license strategy has not spared it from taking the main part of the debt for The collapse of CBEXA digital marketing system for several assets that targeted Nigerian and Kenyan investors. CBEX went down by over $ 800 million in user funds and left a trace of upset investors who believe that SEC should have done more to protect them.
However, Agama dismissed the debt and found that CBEX was an unregistered company and that it is up to investors to implement Due diligence before investing with any company.
“Without registration, the possibility of regulation becomes difficult,” he said.
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