SEC Nigeria Suspends Persons & Products Affected by the Crypto Ban Until they Can Operate Bank Accounts in Nigeria

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The Securities and Exchange Commission of Nigeria (SEC Nigeria) has put on hold all persons and products from admittance into the SEC Regulatory Incubation Framework until they are able to operae bank accounts within the Nigerian banking system.

According to the press release, this decision has been informed by inquiries and comments that seem to imply there is perceived policy conflict between the SEC and the Central Bank of Nigeria (CBN).

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SEE ALSONigerian Senate Summons the Central Bank of Nigeria Governor to Clarify on the Crypto Policy and Ban

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In clarifying its positon on the classification and treatment of digital assets as securities, which was published in September 2020, the SEC has said:

The primary objective of the Statement was not to hinder or stifle innovation, but to establish standards of ethical practices that ultimately make for a fair and efficient securities market.

The SEC made its statement at the time, to provide regulatory certainty within the digital asset space, due to the growing volume of reported flows. Subsequently, in its capacity as the regulator of the banking system, the CBN identified certain risks, which if allowed to persist, will threaten investor protection, a key mandate of the SEC, as well as financial system stability, a key mandate of the CBN.

                          – SEC Nigeria

In light of these developments, SEC Nigeria says it is working with CBN should crypto securities be allowed in future. The two will work together to ‘further analyze and better understand the identified risks to ensure that appropriate and adequate mitigants are put in place.”

The regulator has also said it is continuously monitoring the developments in the digital space and will further engage all critical stakeholders with a view to creating a regulatory structure that promotes a safe, innovative, and transparent capital market.

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RECOMMENDED READING:  Nigeria Becomes the First African Country to Officially Recognize Cryptocurrencies as Securities

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