March 23, 2021

Nigeria’s SEC Suspend Plans To Regulate Cryptocurrency In Light Of Central Bank Ban

The Nigerian Securities and Exchange Commission (SEC) said it had suspended its plans to regulate cryptocurrencies in light of the recent decision by the Central Bank of Nigeria (CBN) to ban the use of cryptocurrencies. 

According to a statement by the SEC; ‘for admittance into the SEC regulatory incubation framework, the assessment of all persons and products affected by the CBN circular of Feb. 5, 2021, is at this moment put on hold until such persons can operate bank accounts within the Nigerian banking system’. 

SEC said its statement was necessitated due to several comments and inquiries from the public that there is a conflict between the SEC Statement on Digital Assets and their Classification and Treatment of September 11, 2020. The circular released by the Central Bank of Nigeria (CBN). The CBN’s circular warned regulated banking institutions that “dealing in cryptocurrencies or facilitating payments for cryptocurrency exchanges is prohibited”, and any breaches of the order would face “severe regulatory sanctions.

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