Connect with us
Paramount
Advertisement
Ican
Advertisement
IZIKJON
Advertisement
Stanbic IBTC
Advertisement
Polaris bank
Advertisement
Binance
Advertisement
Esetech
Advertisement
Patricia
Advertisement
Fidelity ads
Advertisement
app

Cryptocurrency

SEC reacts to CBN’s ban on cryptocurrency transactions

The SEC has stated that there is no contradiction in its policy with that of the CBN as regards cryptocurrency.

Published

on

unclaimed dividend, SEC restrains fintech company, Chaka from advertising or offering for sale shares

The Securities and Exchange Commission (SEC) has disclosed that there is no policy conflict between the capital market apex regulator and the Central Bank of Nigeria (CBN) over the ban placed on Cryptocurrency transactions in the banking industry.

SEC, in a statement shared via its site and seen by Nairametrics, explained that contrary to the perceived policy conflict from some quarters, it saw no such contradictions or inconsistencies.

In recognition of the fact that digital assets might have the full characteristics of investments as defined in the Investments and Securities Act 2007, it stated that trading in such assets falls under SEC’s regulatory purview, except proven otherwise.

READ: N200 billion Unclaimed Dividend: Securities dealers reject FG’s plan to manage fund

It stated, “The primary objective of the Statement was not to hinder or stifle innovation, but to establish standards of ethical practices that ultimately make for a fair and efficient securities market.

“The SEC made its statement at the time, to provide regulatory certainty within the digital asset space, due to the growing volume of reported flows. Subsequently, in its capacity as the regulator of the banking system, the CBN identified certain risks, which if allowed to persist, will threaten investor protection, a key mandate of the SEC, as well as financial system stability, a key mandate of the CBN.”

In light of these facts, “we have engaged with the CBN and agreed to work together to further analyse, and better understand the identified risks to ensure that appropriate and adequate mitigants are put in place, should such securities be allowed in the future.”

READ: Reps raise alarm over N200 billion unclaimed dividends in 2020

SEC’s stand on Capital Market FinTech

  • For the purpose of admittance into the SEC Regulatory Incubation Framework, the assessment of all persons (and products) affected by the CBN Circular of February 5, 2021 is hereby put on hold until such persons are able to operate bank accounts within the Nigerian banking system.
  • The planned implementation of the SEC Regulatory Incubation Guidelines for FinTech firms who intend to introduce innovative models for offering capital market products and services will continue.
  • The SEC will continue to monitor developments in the digital asset space and further engage all critical stakeholders with a view to creating a regulatory structure that enhances economic development while promoting a safe, innovative and transparent capital market.

READ: SEC declares the activities of Famzhi Interbiz illegal

What you should know

Four days ago, Nairametrics reported that CBN insisted that its recent restriction was not new, but only a reminder of the earlier circular that was dated January 2017.

As regards our recent policy pronouncement, it is important to clarify that the CBN circular of February 5, 2021, did not place any new restrictions on cryptocurrencies, given that all banks in the country had earlier been forbidden, through CBN’s circular dated January 12, 2017, not to use, hold, trade and/or transact in cryptocurrencies,” it stated.

The apex bank further stated that the prohibition of cryptos was not exclusive to Nigeria, as certain levels of restrictions on financial institutions facilitating crypto transactions have been applied in several other countries around the world.

bitcoin train

Abiola has spent about 14 years in journalism. His career has covered some top local print media like TELL Magazine, Broad Street Journal, The Point Newspaper.The Bloomberg MEI alumni has interviewed some of the most influential figures of the IMF, G-20 Summit, Pre-G20 Central Bank Governors and Finance Ministers, Critical Communication World Conference.The multiple award winner is variously trained in business and markets journalism at Lagos Business School, and Pan-Atlantic University. You may contact him via email - [email protected]

3 Comments

3 Comments

  1. John

    February 12, 2021 at 9:11 pm

    “…several corrupt countries in the world”

  2. Mr. KingsHOK

    February 13, 2021 at 6:50 am

    The CBN manager is a big retard. How can he pass a circular on Cryptocurrency investment when the economic is not stable and they all contributed to the hardship.

    Before they should start watching countries that banned crypto assets, they should check the major countries like US, UK, UAE etc. And see if they banned people from using such financial assets or just modification to suit the economic standard of that region.

    Nigeria FG should know that cryptocurrency has helped the economy even in the time of crisis.

  3. Lawal umar

    February 13, 2021 at 4:18 pm

    This is not good,there’s not justice there

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Advertisement




Advertisement

Nairametrics | Company Earnings