SEC Abondons Proposed Plan to Regulate Cryptocurrency in Nigeria after Central Bank Ban

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Nigerian SEC Abondons Proposed Plan to Regulate Cryptocurrency in Nigeria after Central Bank Ban
Image credit: Twitter SEC Nigeria (@SECNigeria) | Twitter
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The security exchange commision in Nigeria have Abandon it’s proposed plan to regulate Cryptocurrency in Nigeria after Central Bank Ban
According to reports,the Nigerian market regulating  body was running a sandbox for cryptocurrency  companies.

In a new development, the Nigerian Securities and Exchange Commission, the country’s financial market regulating body/authority, has suspended its plans to regulate cryptocurrencies after the central bank’s latest circular in suspending bank accounts of crypto companies.

In a recent update by the online news portal, Daily Post, the SEC disassociated itself and made some clarifications on its stance after receiving queries related to policy conflicts between the two regulating bodies.

“For the purpose of admittance into the SEC Regulatory Incubation Framework, the assessment of all persons (and products) affected by the CBN Circular of February 5, 2021, is hereby put on hold until such persons are able to operate bank accounts within the Nigerian banking system,” the SEC said in a statement.

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Without doubt, Nigeria is one of the top countries in Africa with crypto penetration. According to market data compiled by Coin Dance, 60,215 Bitcoins were traded in Nigeria in the last five years, which is behind the US.

Barely up to 6 months after SEC had recognize the existence and penetrability of crypto in the country and subsequently initiated plans to create a regulatory sandbox for digital currencies. However, due to the  crypto ban saga from CBN,  the sandbox program for crypto companies has been suspended, it will continue for non-crypto fintech firms.

The Central Bank of Nigeria (CBN) last week disseminated  strict order  prohibiting and banning all banks and financial institutions from offering services to cryptocurrency exchanges thereby preventing credit and debit cards transactions. Companies not following the order would face ‘severe regulatory sanctions.’ In line with this directive, crypto trading and exchange top guns in the country such as  Luno, Buycoins Africa, Binance Nigeria, Quidax etc, where all seen sending press release and  circular  informing their customers about disabling all crypto related withdrawals and deposits.

Furthermore, the crypto community reacted strongly against the ban, running social media campaigns. Many are now moving to peer-to-peer exchanges for Bitcoin purchases.

In conclussion, it was noted that the discussions on the central bank circular even reached the country’s senate on Thursday, and many senators were divided. While some progressive senators demanded a more nuanced approach towards crypto, many argued that that Bitcoin usage has devalued the local fiat.

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