The Securities and Exchange Commission of Nigeria (SEC) revealed that it is discussing regulations on cryptocurrencies with the Central Bank of Nigeria (CBN). The securities regulator also reiterated that due to the CBN directive issued on February 7, 2021, its encryption guidelines issued in September 2020 are still suspended.

Encryption guidelines are shelved

However, the regulator promised that when the cooperation with CBN ends, stakeholders will be informed of the results. At the same time, in the comments made at the virtual meeting of the Capital Markets Committee (CMC) in the first quarter, SEC Commissioner Lamido Yuguda tried to prove that the regulator’s decision to suspend its own guidelines was correct. He says:

Due to the inability to access commercial bank accounts, we had to suspend the September 2020 guidelines, and the implementation of the notice was suspended until these operators were able to access Nigerian bank accounts.

He added that this is the only logical step to be taken because no one can “do business in Nigeria’s capital market without a Nigerian bank account”.

Support all financial technologies

Yuguda still said that after the SEC had “invested heavily in developing a framework to support fintech in various fields,” the US Securities and Exchange Commission was “very supportive of fintech.” He also added:

In all other areas, nothing has changed, but in the field of crypto assets, you know that with the recent CBN ban on crypto exchanges from accessing Nigerian bank accounts, the market has been disrupted.

As reported by News, CBN issued an order prohibiting banks from facilitating transactions involving encrypted entities. The CBN directive seems to contradict the earlier SEC notice, which seems to recognize cryptocurrencies. The ensuing confusion soon forced the SEC to abandon its encryption guidelines and expressed support for CBN’s decision.

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However, Yuguda tried to reassure the cryptocurrency industry in recent comments by stating that regulators will “continue to attract participants and support their legal operations.” The SEC finally stated that it wanted to “ensure the provision of safe products and services without stifling innovation.”

Do you think the SEC will successfully persuade CBN to withdraw? Tell us what you think in the comments section below.

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