BDC operators send an important message to the SEC as Binance and Kucoin suspend Naira trading

• The Association of Bureaux De Change Operators of Nigeria seeks to harmonize the peer-to-peer (P2P) forex market
• The President of Abcon said that over 34 million Nigerians are already trading in digital currencies and this number is increasing at about 9% annually
• However, the SEC chairman said new rules have been introduced to allow regional intellectuals to set up digital platforms

Legit.ng journalist Zainab Iwayemi has over three years of experience in business, technology and capital markets.

To harmonize the peer-to-peer (P2P) forex market in Nigeria, the Association of Bureaux De Change Operators of Nigeria (ABCON) has sought support and guidance from the Securities and Exchange Commission (SEC).

ABCON President Alhaji Aminu Gwadabe made the call during a courtesy call with Dr. Emomotimi Agama, the recently appointed Director General of the SEC.

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He stressed that the SEC is monitoring the industry that poses a risk to the survival of BDCs in Nigeria through online virtual transaction platforms that enable millions of Nigerians to conduct foreign exchange transactions without being tracked down or held accountable.

Furthermore, he clarified that ABCON has made the necessary technological investments to ensure the company’s survival and maintain the integrity of the sub-sector. He opined that the future of BDC business lies in digital currency.

According to a ThisDay report, the ABCON boss said that the meeting with the SEC Director General and the current Board of Directors of the SEC was a continuation of the earlier virtual online consultation.

According to Gwadabe, over 34 million Nigerians are already trading digital currencies and this number is growing at about 9% annually.

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The industry, he said, is huge, worth $9 billion annually and there are hundreds of multi-channel virtual currency exchange platforms, none of which are based in Nigeria.

SEC responds to BDCs

In response, SEC-DG Agama stated that he recognized ABCON’s desire to establish a digital marketplace platform to participate in the evolving Nigerian digital currency ecosystem.

He said:

“We at the SEC are open to helping the sector grow out of love for the country. Therefore, there will be meetings with relevant departments of the SEC to explain methods and strategies that will strengthen the Naira through necessary innovative ideas such as those shared by ABCON.”

The head of the SEC reiterated that new regulations have been introduced that allow local intellectuals to create digital platforms.

He also said that the Commission would work with ABCON to achieve its intended objectives.

Agama gave the order to complete the ABCON digital market model Koletyomoni and the planned ABCON presentation as quickly as possible.

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He stressed that the agency would maintain order in the issuance, promotion and trading of securities in the Nigerian capital market.

Another crypto exchange blocks Naira card

Legit.ng reported that KuCoin, a well-known cryptocurrency exchange, announced on Wednesday, May 15 that its peer-to-peer Naira services and quick purchase service using Naira cards will be temporarily suspended.

It had only been a few weeks since the Nigerian Securities and Exchange Commission met with major national cryptocurrency participants and recommended that they suspend P2P naira-to-naira trading due to the current instability of the naira.

Many believe the action was taken in response to regulatory pressure from the Nigerian government, although KuCoin claimed the suspension was the result of continuous efforts to improve its services.

Source: Legit.ng