Lamido Yuguda, the director-general of Nigeria’s Securities and Exchange Commission has stated the central financial institution’s crypto ban has prompted important disruptions to the market.
According to a report by The Guardian, the SEC director-general made this assertion identified throughout a press convention organized after the assembly of the Capital Market Committee on Thursday.
As beforehand reported by Cointelegraph, the Central Bank of Nigeria barred commercial banks from servicing crypto exchanges again in February.
According to Yuguda, the Commission has been pressured to pause its deliberate cryptocurrency regulatory framework introduced in September 2020.
The SEC director-general additionally maintained that the suspension of the Commission’s crypto regulatory plans will stay in place till exchanges can function financial institution accounts in the nation.
As a part of his handle, the SEC chief maintained that the Commission was working with the CBN to create an optimum regulatory regime for cryptocurrencies in the nation. According to Yuguda, the crypto ban apart, the SEC continues to make strides in supporting the progress of fintech in Nigeria.
Following the CBN crypto ban, cryptocurrency shopping for and promoting is barely potential through peer-to-peer channels resulting in massive premiums on virtual currency prices. In March, the central financial institution governor remarked that the CBN was not against crypto trading in the country however that such transactions can’t happen by industrial banks.
In a earlier assertion shared with Cointelegraph, crypto trade platform Lumo reacted to the CBN ban stating that “blanket bans push folks underground,” including:
“Pushing folks underground additionally makes it simpler for scammers to take advantage of Nigerians, and we’re already seeing Bitcoin commerce at enormous premiums in the nation on account of the ban. Other corporations have made the alternative to seek out workarounds which can be much less seen for regulators – for instance, Peer-2-Peer (P2P) buying and selling. Our view is that P2P buying and selling would go towards the spirit of the CBN’s directive.”
Meanwhile, Nigeria’s vice chairman, Yemi Osinbajo has beforehand known as on regulators to undertake a nuanced strategy to regulating crypto and blockchain. According to the vice chairman, cryptocurrency will challenge traditional finance in the coming years.
