Blockchain, digital assets to revolutionize capital markets, shape economy– Agama

By Abubakar Yunusa

The Director General of the Securities and Exchange Commission, Dr. Emomotimi Agama has said that the Commission’s approach to Digital Asset Regulation recognises the potential of blockchain and digital assets to revolutionize the capital markets and shape the Nigerianeconomy.
Dr. Agama who spoke while delivering a Keynote Address at the Businessday Blockchain Conference 2024, with the Theme: Building Africa’s Future: Harnessing Blockchain for Economic and Social Transformation, said Blockchain technology has moved beyond being a mere buzzword; it is becoming an essential part of the global financial and economic ecosystem.
Its decentralised, transparent, and secure nature has led to innovations in various sectors—ranging from finance to supply chains, healthcare, and governance.
The DG said in Africa, where there are significant issues such as financial exclusion, lack of transparency, and inefficiencies in public and private sectors, blockchain presents an opportunity to build a future where these challenges are addressed.
Blockchain is a digital ledger technology that securely records and verifies transactions across a network of computers. Each transaction is grouped into a block, and these blocks are linked together in a chronological chain.
This structure ensures that once information is added to the blockchain, it cannot be altered or deleted, providing a transparent and tamper-proof record.
Essentially, blockchain is a decentralised system that enhances trust and security by allowing multiple parties to independently verify and validate transactions without needing a central authority.
He stated that “as the transformative potential of blockchain is being celebrated, it is important to address the role of regulation in enabling its growth. Regulation is often viewed as a barrier to innovation, but it is, in fact, essential to building a stable and trustworthy environment for innovation to flourish.
“We have introduced several measures to ensure that these innovations are harnessed responsibly: Accelerated Regulatory Incubation Program (ARIP) and Regulatory Incubation (RI) Program: The ARIP and RI Program were designed to on-board firms operating in the digital asset space and provide a controlled environment to test new models, products, and services.
These programs foster innovation while ensuring that robust consumer safeguards are in place. The recent approval-in-principle granted to two digital asset exchanges and five firms participating in these programs is a testament to our commitment to enabling innovation.
“Our regulatory stance is clear, digital assets such as cryptocurrencies are classified as securities unless proven otherwise. We have established a registration framework that requires issuers and sponsors to prove their assets do not qualify as securities.
This ensures that investor protection and market integrity are upheld while providing a level playing field for legitimate market participants”.
Furthermore, the SEC DG said the Commission isconsistently aligning with international best practices by collaborating with global regulatory bodies such as the International Organization of Securities Commissions (IOSCO), adding that this ensures that the Commission’sregulatory framework remains robust, adaptive, and aligns with global standards, enabling cross-border collaboration and fostering investor confidence.