The Central Bank of Nigeria (CBN) has been in the news over the developments concerning the regulation of cryptocurrencies in the country. In a recent turn of events, Yemi Cardoso, the governor of the Central Bank noted that crypto regulation in the country is under the jurisdiction of the Securities and Exchange Commission of Nigeria and not the premier bank.
CBN Governor reveals position on crypto regulation
The recent CBN Governor’s Statement shows a stark contrast with the actions of the premier bank under the former Governor of the bank. The former governor, Godwin Emefiele was directly in charge of regulating the crypto industry. The CBN, being in charge of crypto regulation dates back to 2021, when the bank mandated financial institutions to stop offering their services to crypto platforms.
The directive by the Emefiele-led CBN at the time was in contrast to the guidelines released by the Securities and Exchange Commission of Nigeria back in 2020. In the guideline, the body clarified that it was in charge of regulating the crypto market. The CBN directive led to the suspension of the guidelines established by the SEC, plunging the Nigerian crypto community into confusion and panic.
However, the governor’s statement has clarified the stance of the CBN regarding crypto regulation. It also emphasizes that the SEC now holds the responsibility of regulating the sector.
This shift also signifies that the CBN is open to accommodating other agencies and regulators in overseeing the crypto industry.
Collaboration for clarity and stability
Cardoso’s statements coincided with the recent news about the escape of a Binance executive Nadeem Anjarwalla from the custody of the National Security Agency in Nigeria. This incident has prompted debates across the country’s crypto community and has also led to the Office of the NSA seeking engagements with Interpol for further investigation.
The change in CBN’s position on crypto regulation showcases the ever-evolving landscape of digital assets in the country. While the guidelines set out by the SEC were touted as a positive step towards recognizing digital assets, the directive under Emefiele set the crypto industry back and disrupted the regulatory environment.
Furthermore, CBN’s call to work with the SEC and other regulatory bodies will ensure a crypto-friendly regulatory framework for crypto in the country. It will also be integral for the bodies involved to clarify their roles and responsibilities to foster a conducive environment for innovation and investment in the country.
