SEC DG: We’re collaborating with global regulatory bodies to foster investor confidence

Emomotimi Agama, the director general of the Securities and Exchange Commission (SEC), has announced that the commission is collaborating with global regulatory bodies to enhance investor confidence.

Agama spoke at the commission’s headquarters in Abuja during a meeting with a delegation from the Algorand Foundation on Tuesday.

The SEC DG said the commission consistently aligns with international best practices by working with global regulatory bodies such as the International Organization of Securities Commissions (IOSCO).

He noted that the collaboration ensures SEC’s regulatory framework remains strong and adaptable while aligning with global standards to foster cross-border cooperation and boost investor confidence.

Agama said the SEC has introduced measures such as the Accelerated Regulatory Incubation Programme (ARIP) and Regulatory Incubation (RI) Programme to encourage responsible innovation.

He explained that the programmes provide a controlled environment for firms in the digital asset space to test new models while ensuring strong consumer protections.

On August 29, 2024, the SEC granted two digital assets exchanges “approval-in-principle” to commence operation under the ARIP.

Agama added that the recent approval-in-principle granted to the digital asset exchanges and five participating firms demonstrates the SEC’s commitment to promoting innovation in the financial sector.

‘SEC TO USE BLOCKCHAIN FOR CAPITAL MARKET REGULATION’

The SEC DG expressed the commission’s intention to adopt blockchain technology as a regulatory tool for overseeing the capital market.

Blockchain technology is a decentralised digital ledger that stores, verifies, and shares transactions across business networks.

He said blockchain technology could address Africa’s challenges, including financial exclusion, lack of transparency, and inefficiencies, by providing a secure and transparent system for recording and verifying transactions.

‘ADOPTION OF BLOCKCHAIN IS INEVITABLE IN AFRICA’

Advocating for all SEC information to be stored on blockchain, Agama said Africa’s adoption of blockchain is inevitable, and the focus should be on maximising its benefits for the greater good.

“We want to activate the blockchain in our efficiency; we want to be able to use it to regulate our market,” the DG said.

“My dream is to have all of the information we need to do our work in a blockchain.

“We want to bring technology into our system for effectiveness where we can work seamlessly and everything that we do will be traceable.

“So wherever there is a toxin in the blockchain we will find it and deal with it.

“We will extend it to the point where review of applications will be done on the blockchain so whoever drops the ball will be seen.

“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.

“We want to leave a legacy that each one of us will be proud of when we leave this Commission.

“But in getting that to happen, we must all be educated enough to drive that course.”

On his part, Eric Wragge, global head of business development of Algorand Foundation, noted that his team is in Nigeria to democratise technology and assist organisations interested in implementing blockchain technology in their operations.

Wragge further noted that the foundation’s job is to travel across the world, identify areas where the technology can be used, and help organisations implement it effectively.