The Securities and Exchange Commission has said it is in discussion with the Central Bank of Nigeria on how to better understand and regulate the cryptocurrency market in the country.

SEC said on Thursday that it would continue to engage players in the financial technology space and support them to operate lawfully in a bid to ensure the delivery of safe products and services without stifling innovation.

The SEC quoted its Director-General, Mr Lamido Yuguda, in a statement as saying on Thursday that a recent circular was issued by the commission in its desire to ensure that only fit and proper persons continued to operate in the capital market.

“It became imperative for the commission to issue this notice for the protection of investors and to preserve the sanctity of the Nigerian capital market as only registered capital market operators are permitted to intermediate in the Nigerian capital market and only through approved channels,” he said in a press briefing at the end of the Capital Market Committee meeting.

He said, “We do not want any unregulated entity to participate in the market because if there are issues, it becomes very difficult to resolve. I therefore encourage fintech firms to approach the commission for due registration and desist from operating illegally.

“In the same vein, registered CMOs are advised to refrain from providing any form of support to unregistered entities operating unlawfully within our market, as such action would not be condoned.

“Furthermore, we urge CMOs to improve on their level of compliance, timeliness and correctness of disclosures and other filings made to the commission.”