The Nigerian Senate Committee on Capital Markets is advocating for cryptocurrency regulation to safeguard investors involved in digital asset trading. Committee chairman, Osita Izunaso, asserts that regulation is imperative since authorities have been unable to halt residents from engaging in crypto asset trading.

Following the appearance of Emomotimi Agama, the newly appointed director-general of the Nigerian Securities and Exchange Commission, before the committee, Izunaso emphasized the need for regulation. He cautioned that Nigeria's ambiguous stance on cryptocurrency could result in missed opportunities.

Despite Nigeria boasting one of the largest crypto markets globally, the country lacks a consistent position on crypto assets. The Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) have demonstrated conflicting views, with the SEC signaling readiness to regulate crypto assets while the CBN has attempted to curb crypto trading.

The change in leadership at the Central Bank of Nigeria (CBN) under Godwin Emefiele has led to a gradual shift in the bank's approach to cryptocurrencies, ultimately resulting in the reversal of the CBN's February 5 directive. However, Nigerian authorities have taken steps to limit crypto trading, including ordering global crypto exchanges to remove support for the local currency and cracking down on alleged currency manipulation on platforms like Binance.

Despite these measures, Nigeria remains among the top five countries with the highest interest in bitcoin globally. Consequently, the chairman of the Nigerian Senate Committee on Capital Markets urges the administration to bolster both the capital and crypto markets to bolster the local currency.

Emphasizing the importance of developing these markets to enhance liquidity and mitigate currency challenges, Izunaso stated, "That is what is crushing the naira and making the naira so little when it’s competing with other currencies. But if we develop our capital market, and develop our crypto market, we will bring more liquidity into the system. That will help to cushion all the problems we have."

Meanwhile, Agama, known for his pro-innovation stance, is committed to revitalizing the Nigerian capital market and fostering innovation. He pledges to introduce initiatives aimed at nurturing world-class companies within Nigeria.