Two Regulators Working On Guideline For Cryptocurrency Trading

The Securities and Exchange Commission (SEC) has revealed that
it is working with the Central Bank of Nigeria (CBN) for a better
understanding and regulation of cryptocurrencies in the
country.

This is coming after CBN had in February 2021, barred deposit
money banks and other financial institutions from doing business
with cryptos and other digital assets.

This disclosure was made by the Director-General of SEC, Lamido
Yuguda, at the 2021 post-Capital Market Committee (CMC) virtual
news conference.

Yuguda said that the commission was in discussion with the CBN
for better understanding and regulation of the crypto-assets
market, adding that the capital market regulator had suspended the
implementation of crypto assets guidelines due to lack of access to
Nigerian bank accounts.

Yuguda in his statement said, “We are in discussion with CBN for
both understanding and better regulating of this market. We will be
able to come back to you later to inform you of the outcome of
these engagements.

But because of the lack of access to commercial bank accounts,
we had to suspend our own guidelines of September 2020. The
implementation of that circular is suspended until these operators
are able to have access to Nigerian bank accounts.

Remember that nobody operates in the Nigerian capital market if
that person does not have access to a Nigerian bank account,” he
said.

Yuguda, however, pointed out that SEC had always provided
support to Fintechs and had invested so much in developing a
framework to support their operations.

He said, “Let me say that the SEC remains very supportive of
fintechs. We have invested so much in developing a framework for
supporting fintechs in the various areas and fintechs are acting in
areas of crowdfunding, investment advice and cryptocurrencies and
the likes.”

He acknowledged the fact that the fintech market had been
disrupted by the CBN’s ban on access to Nigerian bank accounts by
the crypto exchange.

He said, “In all other areas, nothing has changed, but in the
area of crypto assets, you know that with the recent prohibition by
the CBN on access to Nigerian bank accounts by crypto exchanges,
that market has been disrupted.

And the truth of the matter is that while the SEC had issued
guidelines in September 2020 aimed at regulating this market, for
now for all intents and purposes, because these exchanges do not
have access to commercial bank accounts in Nigeria, the market, for
now, does not exist.’’

The apex bank had about two months ago, warned the Deposit Money
Banks, Non-Financial Institutions and other Financial Institutions
against doing business in crypto and other digital assets.

The CBN directed financial institutions to immediately close the
accounts of persons or entities transacting in or operating
cryptocurrency exchanges, warning of severe regulatory sanctions in
the event of any breach of the directive.

The Securities and Exchange Commission (SEC) has revealed that
it is working with the Central Bank of Nigeria (CBN) for a better
understanding and regulation of cryptocurrencies in the
country.

This is coming after CBN had in February 2021, barred deposit
money banks and other financial institutions from doing business
with cryptos and other digital assets.

This disclosure was made by the Director-General of SEC, Lamido
Yuguda, at the 2021 post-Capital Market Committee (CMC) virtual
news conference.

Yuguda said that the commission was in discussion with the CBN
for better understanding and regulation of the crypto-assets
market, adding that the capital market regulator had suspended the
implementation of crypto assets guidelines due to lack of access to
Nigerian bank accounts.

Yuguda in his statement said, “We are in discussion with CBN for
both understanding and better regulating of this market. We will be
able to come back to you later to inform you of the outcome of
these engagements.

But because of the lack of access to commercial bank accounts,
we had to suspend our own guidelines of September 2020. The
implementation of that circular is suspended until these operators
are able to have access to Nigerian bank accounts.

Remember that nobody operates in the Nigerian capital market if
that person does not have access to a Nigerian bank account,” he
said.

Yuguda, however, pointed out that SEC had always provided
support to Fintechs and had invested so much in developing a
framework to support their operations.

He said, “Let me say that the SEC remains very supportive of
fintechs. We have invested so much in developing a framework for
supporting fintechs in the various areas and fintechs are acting in
areas of crowdfunding, investment advice and cryptocurrencies and
the likes.”

He acknowledged the fact that the fintech market had been
disrupted by the CBN’s ban on access to Nigerian bank accounts by
the crypto exchange.

He said, “In all other areas, nothing has changed, but in the
area of crypto assets, you know that with the recent prohibition by
the CBN on access to Nigerian bank accounts by crypto exchanges,
that market has been disrupted.

And the truth of the matter is that while the SEC had issued
guidelines in September 2020 aimed at regulating this market, for
now for all intents and purposes, because these exchanges do not
have access to commercial bank accounts in Nigeria, the market, for
now, does not exist.’’

The apex bank had about two months ago, warned the Deposit Money
Banks, Non-Financial Institutions and other Financial Institutions
against doing business in crypto and other digital assets.

The CBN directed financial institutions to immediately close the
accounts of persons or entities transacting in or operating
cryptocurrency exchanges, warning of severe regulatory sanctions in
the event of any breach of the directive.