Nigeria SEC Puts Crypto Regulation Plans on Hold

The Securities and Exchange Commission (SEC) of Nigeria stated that any plans to regulate the crypto currencies are now on hold following the order of Central Bank of Nigeria (CBN) to close users' accounts involving in crypto currency transactions.

In the statement, the SEC claimed it could “see no no such contradictions or inconsistencies” between the SEC Statement on Digital Assets and their Classification and Treatment of September 11, 2020 and the Central Bank of Nigeria (CBN) Circular of February 5, 2021, though it has received comments and inquiries from the public.

The SEC clarified its stance as the following:

"For the purpose of admittance into the SEC Regulatory Incubation Framework, the assessment of all persons (and products) affected by the CBN Circular of February 5, 2021 is hereby put on hold until such persons are able to operate bank accounts within the Nigerian banking system.

The planned implementation of the SEC Regulatory Incubation Guidelines for FinTech firms who intend to introduce innovative models for offering capital market products and services will continue.”

The SEC also said in the statement that it would further analyse and better understand the identified risk along with the CBN.

Despite CBN’s ban on crypto payments, local crypto community has been largely undeterred, resorting to peer-to-peer exchange platforms to continue trading. Nigeria is among the African countries that has witnessed high crypto penetration and fast crypto development.