Cryptocurrency: CBN, SEC will develop regulatory framework for assets, says FG

Cryptocurrency: CBN, SEC will develop regulatory framework for assets, says FG

- The Securities and Exchange Commission (SEC) has given good news on the cryptocurrency in Nigeria

- SEC's leadership on Tuesday, February 23, said it will partner with the CBN and other associated bodies to develop a set of rules for the online transaction

- The commission stated that the regulations are aimed at protecting both investors and Nigerians who intend to do business online without fear of being swindled

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About one month after ordering financial institutions to close all cryptocurrency accounts, the Central Bank of Nigeria and the Securities and Exchange Commission (SEC) are considering a better way forward.

According to a statement by Lamido Yuguda, the director-general of SEC on Tuesday, February 23, both the apex regulator of Nigeria's capital market and CBN is fashioning a regulatory framework that will oversee cryptocurrencies and other digital assets, Punch reports.

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Yuguda promised Nigerians in his remarks that the commission is all out to use technology as a tool to effect financial inclusion in the nation.

Cryptocurrency: CBN, SEC will develop regulatory framework for assets, says FG
The CBN and SEC said they will develop a regulatory framework for cryptocurrency assets (Photo: @bitcoin)
Source: UGC

He stated that the chief objective of the proposed framework is to see to it that citizens who are in the crypto asset space carry out their online business exchanges in ways that assure investors of safety and thus maintains financial stability.

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Yuguda explained:

“We believe that FinTech would not only bring about efficiency to the capital market but would also serve as a veritable tool for advancing Nigeria’s Financial Inclusion agenda.
“However, there is a need to develop an appropriate regulatory framework to ensure the safety of innovation to investors and preserve market integrity.”

Meanwhile, the Digital Rights Lawyers Initiative (DRLI) had taken steps to reverse the earlier directive on the online exchange.

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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.

Onyirioha Nnamdi is a graduate of Literature and English Language at the University of Lagos. He is a Politics/Current Affairs Editor who writes on news and political topics for Legit.ng. He brings into his reporting a wealth of experience in creative and analytical writing. Nnamdi has a major interest in local and global politics.

Source: Legit

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