Few weeks after the ban on cryptocurrency by CBN, the Securities and Exchange Commission (SEC), as well as Central Bank of Nigeria, had said that they will join hands together to regulate the crypto market.

This was said at a virtual meeting organized by the Association of Capital Market Academics of Nigeria (ACMAN) in Abuja.

According to Timi Agama, Head of Department, Registration, Exchanges, Market infrastructure and Innovation Department of SEC said that cryptocurrency is an air that cannot be caged and that the world cannot be moving forward while Nigeria would be static.

He explained that while financial institutions will not condone any form of fraudulent practices and money laundering, the crypto market is
something that must be looked into.

He further said that due to the opportunities crypto affords; the presence of ICOs, derivatives, the threats of cryptocurrency, and digital assets will be regulated by SEC to avoid the challenges inherent in the currency.

Director of Financial Policy and Regulation Department of the CBN, Kevin Amigo, said the ban was a mechanics to enable the financial system to work with stakeholders to analyze the anonymity of technology.

He concluded that CBN would keep making policies to optimize opportunities and promote the economic landscape of the country.

With regards to this, Amigo stated that the committee on cryptocurrency headed by the National Security Adviser with members drafted from EFCC, NFIU, SEC, NAICOM, and other regulators will meet to decide on a way forward as regards the ban.

He said that the interest crypto has generated, that there is a need for stakeholders to convene, to issue a national position as opposed to CBN or SEC position.

“The way forward for us will be a continuous engagement, ongoing consultations, and academic research. We are engaging internationally and locally to ensure that we come out with a harmonized and implementable position” he concluded.

What this means for the ban

When CBN made a policy that banks must ban the account of users that are linked to crypto wallets, this sparked uproar from various quarters.

Not only crypto traders but business owners who knew how well digital assets contribute to their business growth.

At the meeting, Gbite Oduneye, the CEO of Eagle Global Market (EGM) appealed to financial institutions to find ways to regulate the crypto market due to the inherent prospects it has.

With growing interest from business juntas, CBN will be forced to abide by the rulings of the committee which would most likely, favor most crypto enthusiasts.

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