It was now one of the most recent incidents that took place in Nigeria that resulted in the banning of cryptocurrencies in the entire country. It was the Central Bank of Nigeria (CBN) that issued a directive notifying all the financial institutions in the country to ban cryptocurrencies entirely.
The directive instructed the banks from all over the country to cease and ban all the activities that were going on with the crypto-sectors. The ban from the Central Bank of Nigeria (CBN) came while the Securities and Exchange Commission (SEC) of Nigeria was in the process of releasing new regulations around cryptocurrencies.
However, due to the ban imposed by the Central Bank of Nigeria (CBN), the Nigerian SEC had to suspend the regulatory implementation. Although the new regulatory work has been suspended by the SEC, yet the commission has made it clear where it stands with respect to cryptocurrencies.
The Securities and Exchange Commission of Nigeria has tried to explain and clarify where it stands with respect to crypto-adoption.
One of the local news agencies known as the Premium Times has shared a report around the regulatory framework. The agency has revealed that the SEC and the CBN will be working together on streamlining the process of cryptocurrencies in the country.
The responsible teams at both regulatory firms will be working together in order to introduce a flexible as well as effective and strict regulatory framework in the crypto-sector.
It now becomes evident that the cryptocurrency sector in the country has become vast and widely adopted by the locals. The industry is now being adopted by several exchanges, innovation heads, and market infrastructures that the regulators cannot ignore the industry’s importance.
Over time, the cryptocurrency industry has become so much popular and widely adopted, that its importance as a $1.74 trillion market in the entire world, especially in Nigeria cannot be ignored.
Amid the strict action taken by the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC) holds the crypto-sector in the country in very high-regards.
The SEC has revealed that the locals from Nigeria are attracted to the promising outcomes of cryptocurrencies. The cryptocurrency industry would turn out to be one of the key factors that will boost the economy of the entire country.
The SEC stated that one of the biggest challenges that Nigerian regulators currently face from crypto-industry is indeed the lack of regulatory infrastructure.
However, the same problem is being faced by regulators from all over the world. But they have not banned the industry entirely and are looking for ways to regulate the industry as effectively as possible.
This is exactly what the Securities and Exchange Commission is trying to achieve in Nigeria. The regulatory authority wants to ensure that there is enough flexibility yet strictness in the country that would let the crypto-sector thrive in the country.