The Central Bank of Nigeria (CBN) has made headlines recently regarding its stance on regulating cryptocurrencies in the country. In a surprising turn of events, CBN Governor Yemi Cardoso revealed that the responsibility for crypto regulation lies with the Securities and Exchange Commission (SEC) of Nigeria, rather than the central bank.
This statement from the CBN Governor marks a significant departure from the actions of the former governor, Godwin Emefiele, who was directly involved in regulating the crypto industry. Under Emefiele’s leadership, the CBN took charge of crypto regulation in 2021 by instructing financial institutions to cease providing services to crypto platforms.
This directive from the CBN contradicted the guidelines issued by the SEC in 2020, which clearly stated that the commission was responsible for regulating the crypto market. The CBN’s directive resulted in the suspension of the SEC’s guidelines, causing confusion and panic within the Nigerian crypto community.
However, the Governor’s statement has now clarified the CBN’s position on crypto regulation and highlighted that the SEC has assumed the responsibility for overseeing the sector. This shift also indicates that the CBN is open to collaborating with other agencies and regulators to regulate the crypto industry.
Cardoso’s statements coincided with the news of the escape of Binance executive Nadeem Anjarwalla from the custody of the National Security Agency in Nigeria. This incident has sparked debates within the country’s crypto community and has prompted the Office of the NSA to seek cooperation with Interpol for further investigation.
The change in the CBN’s stance on crypto regulation reflects the rapidly evolving landscape of digital assets in Nigeria. While the SEC’s guidelines were seen as a positive step towards recognizing digital assets, Emefiele’s directive set the crypto industry back and disrupted the regulatory environment.
Furthermore, the CBN’s call for collaboration with the SEC and other regulatory bodies will ensure the establishment of a crypto-friendly regulatory framework in the country. It is crucial for these organizations to clarify their roles and responsibilities to create an environment conducive to innovation and investment in Nigeria.