CBN, SEC in talks over cryptocurrency market, regulation

The Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) are in talks over cryptocurrency market in the country.

The apex bank had banned the transaction of the cryptocurrency.

The discussions are centered around understanding and regulating the cryptocurrency which has become a global phenomenon as investors migrate from several investment vehicles to store their wealth in bitcoin and altcoins.

The head of the capital regulator, Director-General, Lamido Yuguda, said it will continue to have discussion with stakeholders in the tech space in order not to endanger innovation within the country, while keeping watch of the activities ongoing in the cryptocurrency market.

Yugud also stated that the commission intends to ensure only credible persons operate in the capital market. He made this known on Thursday, April 15, 2021, during a press briefing at the end of the Capital Market Committee meeting.

Read also: After cryptocurrency ban, Nigerian govt moves against fintech firms trading foreign stocks

“It became imperative for the commission to issue this notice for the protection of investors and to preserve the sanctity of the Nigerian capital market as only registered capital market operators are permitted to intermediate in the Nigerian capital market and only through approved channels.”

He added, that, “We do not want any unregulated entity to participate in the market because if there are issues, it becomes very difficult to resolve. I therefore encourage fintech firms to approach the commission for due registration and desist from operating illegally.

“In the same vein, registered CMOs are advised to refrain from providing any form of support to unregistered entities operating unlawfully within our market, as such action would not be condoned.

“Furthermore, we urge CMOs to improve on their level of compliance, timeliness and correctness of disclosures and other filings made to the commission.” Yuguda said.

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