Nigeria’s SEC says central bank’s crypto ban disrupted the market

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Lamido Yuguda, the director-general of Nigeria’s Securities and Trade Fee has stated the central financial institution’s crypto ban has brought on vital disruptions to the market.

In accordance with a report by The Guardian, the SEC director-general made this assertion recognized throughout a press convention organized after the assembly of the Capital Market Committee on Thursday.

As beforehand reported by Cointelegraph, the Central Financial institution of Nigeria barred commercial banks from servicing crypto exchanges again in February.

In accordance with Yuguda, the fee has been compelled to pause its deliberate cryptocurrency regulatory framework introduced in September 2020.

The SEC director-general additionally maintained that the suspension of the fee’s crypto regulatory plans will stay in place till exchanges can function financial institution accounts within the nation.

As a part of his deal with, the SEC chief maintained that the fee was working with the CBN to create an optimum regulatory regime for cryptocurrencies within the nation. In accordance with Yuguda, the crypto ban apart, the SEC continues to make strides in supporting the expansion of fintech in Nigeria.

Following the CBN crypto ban, cryptocurrency shopping for and promoting are solely potential by way of peer-to-peer channels resulting in massive premiums on digital 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 business 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 large premiums within the nation on account of the ban. Different corporations have made the selection to seek out workarounds which are much less seen for regulators — for instance, peer-to-peer buying and selling. Our view is that P2P buying and selling would go towards the spirit of the CBN’s directive.”

In the meantime, Nigeria’s vp, Yemi Osinbajo, has beforehand known as on regulators to undertake a nuanced method to regulating crypto and blockchain. In accordance with the vp, cryptocurrency will challenge traditional finance in the coming years.