Nigeria’s Security and Exchange Commission, SEC has suspended planned Regulations of Crypto after Central Bank announced ban on the digital currencies.
SEC in an emailed statement quoted by the Daily Post on Friday, stated that; “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.”
A previous report by Cointelegraph, stated that the commission recognized digital assets back in September 2020. At the time, the SEC said it was set to create a regulatory sandbox for cryptocurrencies as part of efforts to fully regulate the market.
The SEC’s latest statement is in response to stakeholder inquiries as to the alleged policy contradictions between its announcement in September and the circular of the central bank.
According to the Commission, the proposal for a regulatory sandbox would proceed as expected for non-crypto-fintech companies focused on the capital market.
Since the annulment of crypto trading, reactions has apparently split across the country along ethnic and geopolitical lines, with more progressive political elements arguing against the move. For its part, the central bank said that the move was taken in order to tackle the use of virtual currencies by criminal elements in Nigeria.
The plenary session of the Senate on Thursday saw some senators calling for a more nuanced approach by the central bank to the regulation of cryptocurrencies. Read here: Nigerian Senate to intervene in cryptocurrency ban.
However, Senator Sani Musa of the Niger East Senatorial District claimed that Bitcoin had made the naira “nearly useless.”
The goodnews is that after series of deliberations, the Nigerian Senate has decided to invite the CBN governor to appear before the appropriate committees to discuss the potential modalities for future Regulations of Crypto in the country.