Crypto Ban by Nigeria’s Central Bank Disrupted the Market, Claims Nigerian SEC
It was just back in February when the Central Bank of Nigeria (CBN) dropped the crypto-ban bomb on the citizens of Nigeria. Since then, cryptocurrencies are fully banned in the country and there are currently no signs when the crypto-sector will be back up again.
While there are no promising or satisfactory statements from the CBN, the Nigerian SEC has finally started addressing the current situation in Nigeria after the banning of cryptocurrencies.
The Securities and Exchange Commission from Nigeria, represented by its director-general, Lamido Yuguda recently made a statement about cryptocurrency banning and its after-effects.
Yuguda stated that the banning of cryptocurrencies in the country has created way too many disruptions in the Nigerian markets. There were many people in Nigeria that had grown used to cryptocurrencies and the assets had gained local status in the country.
Even some of the smallest of businesses and shops in Nigeria had become accustomed to accepting cryptocurrencies as payments. The people of Nigeria had finally started to recover from the financial crisis. They had finally become independent and were able to improve their lifestyles, with the utilization of cryptocurrencies.
However, the Central Bank of Nigeria (CBN) has stopped all of that by making a single move. Although the regulator had no bad intentions behind the banning, yet it has caused a lot of damage to the overall financial condition of the country.
Many people from Nigeria are again deprived of a lifestyle and financial boost they had received due to cryptocurrencies. The recent act from the Central Bank of Nigeria (CBN) will have everlasting effects on the entire population and economy of Nigeria.
The Securities and Exchange Commission (SEC) has also shared that the banning decision from the CBN came while the SEC was in the process of developing a new regulatory infrastructure around cryptocurrencies.
The SEC had aimed to regulate the cryptocurrency sector in the country enough that it could become a streamlined process for all firms and authorities interacting with crypto one way or another.
However, as the CBN has imposed the cryptocurrency ban, there is not much the SEC can do in this matter. The SEC even had to postpone and pause the process of finalizing the new cryptocurrency regulatory infrastructure.
This is mainly because the CBN has ordered the Nigerian banks to cease all activities and operations currently being carried out with the cryptocurrency exchanges.
Until that restriction is lifted, there is no point in introducing the regulatory infrastructure for cryptocurrencies.
Yuguda clarified the despite the recent bans, the SEC wants to clear its position and stand in regards to digital assets. He stated that the SEC supports the idea of more exposure in Nigeria in terms of cryptocurrencies. It hopes that the CBN will also realize the same and will be taking necessary steps to re-instate cryptocurrencies in the country.