SEC Adopts Blockchain Technology to Enhance Trust and Transparency in the Capital Market

Embracing Innovation for Market Trust

The Securities and Exchange Commission (SEC) is taking steps to incorporate blockchain technology into the capital market to improve trust and transparency. This move was highlighted by the Director-General of the SEC, Dr. Emomotimi Agama, during the annual conference of the Capital Market Correspondents Association of Nigeria.

Advancing Market Accessibility and Investor Confidence

Agama emphasized that the adoption of blockchain technology is crucial for fostering trust among market participants. By utilizing digital platforms, the SEC aims to enhance market accessibility, allowing even retail investors in remote areas to participate in capital market activities. The oversubscription of recent recapitalization offers serves as evidence of investors’ strong confidence in the market.

Commitment to Transparent Capital Formation

John Achile, representing the SEC DG, reiterated the Commission’s commitment to promoting trust and transparency in the capital market. Efforts to improve disclosure standards, corporate governance practices, and financial literacy campaigns are underway. Collaboration with fintech companies will also be instrumental in providing more accessible investment options for the public.

Enhancing Market Integrity and Regulatory Oversight

The SEC’s focus remains on creating an enabling environment for capital formation with clear guidelines and communication channels for market stakeholders. Digitalization efforts are being prioritized to streamline processes, ensure timely application reviews, and enhance regulatory oversight. These initiatives aim to protect investors and maintain market integrity.