With much of the Nigerian crypto market underground or peer-to-peer due to government restrictions, the country\u2019s securities regulator is looking into ways to make investors safer. In 2021, financial institutions operating in Nigeria have been the lever of a government crackdown on cryptocurrencies, beginning with February\u2019s notorious central bank ban on lenders providing services to crypto exchanges in the country. With much of the Nigerian crypto market of necessity peer-to-peer, Nigeria\u2019s Securities and Exchange Commission (SEC) now aims to introduce regulations that could regularize the industry and offer investors better protection.According to a Sept. 2 report, the SEC has established a dedicated fintech division tasked with studying crypto and blockchain investments and products \u2013 knowledge it could then marshal into a future crypto regulatory framework. Director General Lamido Yuguda told Reuters this week that the agency is \u201clooking at this market closely to see how we can bring out regulations that will help investors protect their investment in blockchain."\u00a0Nigeria\u2019s SEC, which considers that all crypto assets \u201dare securities, unless proven otherwise,\u201d will only be able to establish a regulatory framework if crypto is once again integrated into the country\u2019s banking system.\u00a0 The agency is also reportedly looking to work with fintechs to strengthen the domestic market for securities to dissuade capital flight, which continues to beset multiple sectors.Crypto\u2019s exclusion from banking channels has not dampened enthusiasm for the asset class. On the contrary, in a year fraught with political and economic crises, including social and economic repression and rampant inflation, crypto adoption has continued to grow.Related: Nigeria regulators recognize digital assets in stunning new statementThe Central Bank of Nigeria (CBN) is also partnering with a Barbados-based fintech as a technical partner for its proposed e-naira digital currency, preliminary guidelines issued in August. At a meeting of the country\u2019s Monetary Policy Committee in Abuja this spring, CBN Governor Godwin Emefiele expressed his confidence that cryptocurrencies like Bitcoin (BTC) will eventually be legal in the country but stressed that the government would do its best to prevent them from being used to finance illicit activities.