You lack the power to regulate cryptocurrencies, digital rights lawyers drags CBN, SEC to court

You lack the power to regulate cryptocurrencies, digital rights lawyers drags CBN, SEC to court

- The CBN has been sued over the ban on cryptocurrency in the country

- According to reports, the suit was brought against the apex court by Digital Rights Lawyers Initiative

- CBN and the Securities and Exchange Commission (SEC) are the first and second defendants in the suit

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Following the ban on cryptocurrencies by the federal government of Nigeria, the Digital Rights Lawyers Initiative (DRLI) has taken steps to reverse the directive.

In achieving this, the group has approached the Federal High Court in Lagos, urging the court to quash the letter prohibiting banks from dealing in cryptocurrencies and closing down of suspected bank accounts.

Going further, it asked the court for a perpetual injunction restraining the apex bank from regulating and/or further regulating virtual currencies/ cryptocurrencies in Nigeria.

According to DRLI, the CBN lacks the power to regulate cryptocurrencies, The Nation reports.

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The CBN and the Securities and Exchange Commission (SEC) are the first and second defendants in the suit marked FHC/L/CS/ 188/2021.

You lack the power to regulate cryptocurrencies, digital rights lawyers drags CBN, SEC to court
The Digital Rights Lawyers Initiative has dragged the CBN to court over letter prohibiting banks from dealing in cryptocurrencies. Photo: @cenbank
Source: Twitter

Meanwhile, Legit.ng had reported that Tesla Inc., the company belonging to the world's richest man, Elon Musk has invested $1.5 billion (about N571 billion) in Bitcoin, according to a report by Bloomberg.

The news media added that the company is also expected to start accepting the cryptocurrency as payment.

Legit.ng gathers prices for the digital asset skyrocketed to a record above $43,000 after the news of the bold investment.

Following the backlash from Nigerians, the CBN has highlighted some reasons why the ban on cryptocurrencies will not be reversed.

The central bank gave a detailed explanation on why it ordered deposit money banks to desist from transacting in cryptocurrencies.

Among other justifications, the CBN said transacting in cryptocurrencies portend a significant risk of loss of investments.

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Legit.ng had also reported that a former presidential aspirant, Adamu Garba, stated that investing in cow business is better than getting involved in the cryptocurrency business.

In a post shared on his Twitter page on Friday, February 5, the controversial businessman said cow business boasts of huge returns on investment.

Garba's tweet has fetched him harsh criticisms from Nigerians who have taken to their social media pages to express their views.

Source: Legit Newspaper

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