The Securities and Exchange Commission (SEC) recently issued regulations concerning digital assets and cryptocurrency in Nigeria. The updated rules by the SEC imply that digital assets and cryptocurrency are not prohibited in the country. ayokinews.com reports
Early last year, the CBN banned banks from involving in cryptocurrency transactions. This prohibition, led by the Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, stirred mixed reactions among citizens. Following the dilemma, the accounts of several crypto-related businesses were frozen, and retail traders exercised caution while carrying out crypto transactions.
In defense of the criticisms that followed this clampdown, the CBN claimed it had not placed any new restrictions on cryptocurrency. Instead, it only reiterated the 2017 financial policy.
Why The CBN Restricted Cryptocurrency Trading
Speaking on the what necessitated the restrictions placed on crypto transactions in Nigeria, Emefiele revealed that the measures taken by the CBN to restrict crypto trading resulted from the high risks associated with owning cryptocurrency. Crypto assets are volatile, and statistics have shown that traders can lose all or part of their hard-earned money while trading the digital assets.
Also, the CBN stated that it had received counsel from International bodies, and placing a ban on cryptocurrency trading seemed to be the best option for the citizens.
What’s Next For Crypto Enthusiasts?
With the recent statement from the SEC regarding the use of digital currencies, crypto fans in the country are highly anticipating a response from the CBN. The SEC classified digital assets as security and not a currency. This implies that Nigerian citizens can invest in cryptocurrency.
The SEC is expected to meet with representatives from the CBN to re-access the classification and use of cryptocurrency by individuals and banks. An unanimous decision to enable banks to once again execute crypto transactions will make a massive difference in crypto communities in Nigeria.