SiBAN recently held a key meeting with the Securities and Exchange Commission (SEC), one of the institutions whose role is central to how Nigeria's blockchain and virtual assets space develops in the coming years.
The SiBAN delegation, led by President Mela Claude Ake and accompanied by Ayo Shonibare, Vice President (Policy, Regulations & Ethics), met with Abdulrasheed Dan-Abu, Head of Fintech & Innovation, and the Director of Fintechs, Innovation & Emerging Technology to discuss two critical issues affecting the industry.
The Case for Licensing
SiBAN made a strong case for the expedited licensing of blockchain and virtual asset operators. Our position is clear: formal licensing confers full legitimacy on industry participants and creates the kind of regulatory certainty that serious investors require before committing capital to the sector.
The absence of a clear licensing framework has been one of the biggest barriers to growth in this sector. Investors, both local and foreign, do not pour capital into uncertainty. They invest where there are clear rules, structure, and accountabilityWhen operators are licensed, investors feel safe.
When investors feel safe, capital flows. As capital flows into the ecosystem, the industry expands, consolidates, and begins to deliver the kind of economic value that puts Nigeria on the global digital asset map. We were encouraged by the response from the SEC Head of Fintechs & Innovation, who affirmed that licensing is equally important to the Commission and that this administration is keen to make a well-structured licensing framework a defining part of its legacy.
Pushing Back on Capital Requirements
SiBAN also addressed key concerns regarding the SEC's January capital requirements. Specifically, we:
- Raised concerns about the minimum capital requirements released by the SEC in January.
- Reiterated our position, as outlined in our formal position paper, advocating for a tiered capital structure.
- Recommended a capital framework that allows operators to enter the market at different levels of capital strength
- .Opposed a single high capital threshold that could exclude smaller but viable market participants.
- Called for an extension of the compliance deadline to give operators more time to meet the requirements.
The SEC Director of Fintechs, Innovation & Emerging Technology acknowledged our concerns and indicated that a revised set of rules is in the pipeline, one that may reflect the reforms SiBAN has been advocating. We will remain an active voice in that process.
This is what SiBAN exists to do, show up for the industry and push for policies that are suitable for all stakeholders in the industry. Every conversation SiBAN has at that level is a conversation on behalf of every operator, founder, investor, and innovator building in Nigeria's blockchain and digital asset space but advocacy works best when it is backed by numbers.
The more voices that stand behind SiBAN, the stronger our position at every table we sit at. This is not a time to watch from the sidelines. If you are building in this space, your place is with us.
Want to be part? Join SiBAN today and add your voice to Nigeria's most active blockchain advocacy community. Send an email to [email protected] or join our SiBAN Telegram community.
