Nigeria’s SEC in conversation with the Central Bank of Nigeria about crypto regulation – crypto guidelines still suspended for 2020 – regulation Bitcoin News

The Nigerian Securities and Exchange Commission (SEC) has announced that talks are currently underway with the Central Bank of Nigeria (CBN) over the regulation of cryptocurrencies. The securities regulator also reiterated that due to a CBN guideline issued on February 7, 2021, the crypto guidelines issued in September 2020 are still suspended.

Set crypto guidelines aside

However, the regulator promises that stakeholders will be informed of the outcome after their collaboration with the CBN is complete. In his comments made during a virtual conference of the Q1 Capital Market Committee (CMC), Lamido Yuguda, the SEC’s director general, seeks to justify the regulator’s decision to suspend its own policies. He said:

Due to the lack of access to commercial bank accounts, we had to suspend our own guidelines from September 2020. Implementation of this circular will be suspended until these operators have access to Nigerian bank accounts.

He adds that this was the only logical step as no one “can operate in the Nigerian capital market without access to a Nigerian bank account”.

Support for all fintechs

Still, Yuguda claims that the SEC “is very supportive of fintechs” after the regulator has “invested so much in developing a framework to support fintechs across the board.” He adds:

Nothing else has changed in any other area, but in the crypto assets arena, you know that with the recent CBN ban on accessing Nigerian bank accounts through crypto exchanges, that market has been disrupted.

As reported by Bitcoin.com News, the CBN has issued a policy prohibiting banks from allowing transactions with crypto entities. The CBN guideline appeared to contradict an earlier SEC circular that appeared to be advocating cryptocurrencies. The resulting confusion soon forced the SEC to abandon its crypto guidelines and endorse the CBN’s decision.

However, in his recent comments, Yuguda tries to reassure the crypto industry by stating that the regulator “will continue to involve players and help them operate lawfully”. Ultimately, the SEC wants to “ensure the provision of secure products and services without hindering innovation”.

Do you think the SEC will be able to get the CBN to withdraw? Let us know what you think in the comments section below.

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