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Crypto, Digital Banking Regulations : SEC, CBN Discuss Review

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The Securities and Exchange Commission, (SEC), is “in discussion with the CBN towards better understanding and better regulations for the digital currency market.”Director General of SEC, Mr. Lamido Yuguda stated this while briefing newsmen on the outcome of the first quarter Capital Market Committee meeting held virtually.

“We would be able to come back at some point later to tell of the result of our engagement but because of the lack access to commercial banking accounts, we have to suspend our circular of September 2020. “The implementation of that circular is suspended until these operators are able to have access to Nigerian banking accounts”, he added.

Speaking on the controversy over restriction placed on trading in digital currencies and other digital assets, the DG said the lack of access to commercial banking accounts as a result of ban imposed by the Central Bank of Nigeria means the market no longer exists.

According to him, “the Commission recognises the impact of FinTechs on capital market activities, and wishes to assure the public that we remain accommodative of this development. We shall continue to engage players and support them to cooperate lawfully. Our aim is to ensure the delivery of safe products and services without stifling innovation, I therefore encourage FinTech firms to approach the Commission for due registration and desist from operating illegally”.

Giving details during questions and answers, he said:

“In the area of crypto assets, you know that with the recent prohibition by the CBN of access to Nigerian banking accounts by the crypto exchanges, that market has been disrupted.

“The truth of the matter is that while the SEC has issued guidelines in September 2020 aimed at regulating this market, for now, for all intent and purposes because these exchanges do not have access to commercial banking accounts in Nigeria, the market now does not exist. “


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