BDC Operators Send Important Message to SEC as Binance, Kucoin Suspend Naira Trading

• The Association of Bureaux De Change Operators of Nigeria is seeking to harmonise the peer-to-peer (P2P) forex market
• Abcon president said that Over 34 million Nigerians trade digital currency already, and that figure rises by about 9% a year
• The SEC chairman, however said that new rules had been implemented to enable regional intellectuals to establish digital platforms

Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

In order to harmonise the peer-to-peer (P2P) forex market in Nigeria, the Association of Bureaux De Change Operators of Nigeria (ABCON) has requested assistance and direction 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 SEC.

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He emphasised that the SEC oversees the industry that poses a risk to the survival of BDCs in Nigeria by way of online virtual transaction platforms that allow millions of Nigerians to transact in foreign exchange without being tracked down or held accountable.

Additionally, he clarified that ABCON has made the necessary technological investments to guarantee the company's survival and maintain the subsector's integrity. He opined that the future of BDC business is digital currency.

The ABCON boss, according to a ThisDay report, said that the meeting with the SEC DG and the present executive board of the SEC was a follow-up on the earlier online virtual consultation.

According to Gwadabe, there are already over 34 million Nigerians trading digital currency, and that number is growing by roughly 9% annually.

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The industry, he said, is enormous, worth $9 billion annually, and there are hundreds of multichannel virtual currency FX platforms available, none of which are native to Nigeria.

SEC responds to BDCs

In response, SEC DG Agama stated that he recognised ABCON's desire to establish a digital marketplace platform in order to participate in the developing Nigerian digital currency ecosystem.

He said:

“ We at the SEC are open to help the sector grow for the love of the country therefore there will be meetings with the relevant departments of the SEC to detail methods and strategies that will strengthen the Naira through necessary innovative ideas as shared by ABCON.”

The head of the SEC reaffirmed that new regulations have been put in place to allow local intellectuals to create digital platforms.

He also said that the commission will work with ABCON to accomplish the intended goals.

Agama gave the order to finalise the ABCON digital market model, Koletyomoni, and the planned ABCON presentation as soon as feasible.

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He emphasised that the agency will maintain order in the issuance, promotion, and trading of securities on Nigeria's capital market.

Another crypto exchange suspends naira card

Legit.ng reported that KuCoin, a well-known cryptocurrency exchange, on Wednesday, May 15, announced that its peer-to-peer naira services and fast-buy service using naira cards would be temporarily discontinued.

Only a few weeks had passed since the Nigerian Securities and Exchange Commission met with significant national cryptocurrency players and recommended that they cease P2P naira-to-naira trade owing to the naira's current instability.

Many believe the measure was conducted in response to regulatory pressure from the Nigerian government, even though KuCoin claimed that the suspension was the result of continuous efforts to improve its services.

Source: Legit.ng