The Central Bank of Nigeria (CBN) has made headlines recently regarding the regulation of cryptocurrencies in the country. In a surprising turn of events, the governor of the CBN, Yemi Cardoso, stated that the regulation of crypto falls under the jurisdiction of the Securities and Exchange Commission of Nigeria, not the CBN itself.
This statement from the CBN governor marks a significant departure from the actions of the former governor, Godwin Emefiele, who was directly responsible for regulating the crypto industry. Under Emefiele’s leadership, the CBN took charge of crypto regulation in 2021 by instructing financial institutions to cease offering their services to crypto platforms.
This directive from the CBN clashed with the guidelines released by the Securities and Exchange Commission of Nigeria in 2020, which clearly stated that they were responsible for regulating the crypto market. The CBN’s directive resulted in the suspension of the SEC’s guidelines, causing confusion and panic within the Nigerian crypto community.
However, the recent statement from the CBN governor has now clarified the CBN’s position on crypto regulation. It confirms that the SEC now holds the responsibility for regulating the sector. This shift also indicates that the CBN is willing to collaborate with other agencies and regulators to oversee the crypto industry.
The timing of Cardoso’s statements coincides with the news of a Binance executive, Nadeem Anjarwalla, escaping custody from the National Security Agency in Nigeria. This incident has sparked debates within the country’s crypto community and has prompted the Office of the NSA to seek engagement with Interpol for further investigation.
The change in the CBN’s stance on crypto regulation demonstrates the ever-changing landscape of digital assets in Nigeria. While the SEC’s guidelines were seen as a positive step towards recognizing digital assets, Emefiele’s directive set the crypto industry back and disrupted the regulatory environment.
Moreover, the CBN’s call for collaboration with the SEC and other regulatory bodies will ensure the establishment of a crypto-friendly regulatory framework in the country. It is also crucial for these bodies to clarify their roles and responsibilities to create an environment conducive to innovation and investment in Nigeria.
