Nigeria's SEC Dumps Plans For Cryptocurrency Regulations, Backs CBN

By: Dickson Arinze

February 13, 2021 5:58 AM

Nigeria's SEC has previously announced its plans on setting up a regulatory framework for Bitcoin and cryptocurrencies in the country.

The SEC has now discontinued such plans as they jump the ship in support of the Central Bank of Nigeria (CBN) restricting banks from offering their services to crypto exchanges.

According to an emailed report on Friday, from SEC stated:

“For acceptance into the SEC Regulatory Incubation Framework, the review of all persons (and products) who were affected by the Circular from CBN of Feb. 5, 2021, is set to be placed on hold until such persons and products can operate a bank accounts within the Nigerian banking system.”

The SEC made its intention to regulated crypto assets during September 2020, at the time the regulators claimed they are set to create a regulatory framework for crypto in a bid to completely regulate the markets.

Despite heavy criticism, the CBN said the move to ban cryptocurrency was taken to thwart the use of virtual currencies by criminal elements in the country.

As previously reported by Coinnewsafrica, The Senate plenary session on Thursday saw divided opinion with some senators calling for a more modest approach by the central bank in regulating cryptocurrencies. Nonetheless, Senator Sani Musa of the Niger East Senatorial District claimed Bitcoin (BTC) had made the naira “almost useless," calling the ban a right move.

The Nigerian Senate has agreed on inviting the CBN governor to appear before the appropriate committees to discuss possible mechanisms for future crypto regulations in Nigeria.