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SEC joins CBN, bans crypto trading in Nigeria |AF NEWS

Afnews Editor

Feb 12, 2021

The Securities and Exchange Commission (SEC) has joined the Central Bank of Nigeria (CBN) to ban crypto trading.

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SEC has stopped admittance of affected persons into its Regulatory Incubation Framework for Fintech firms.

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In a statement on Thursday, SEC said it received inquiries on a perceived policy conflict between its September 11 statement on Digital Assets, Classification and Treatment and the February 5 CBN circular.

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The commission stressed that there were no contradictions or inconsistencies.

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It clarified that last year's statement was to provide regulatory certainty within the digital asset space, due to the growing volume of reported flows.

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SEC said as the regulator of the banking system, the CBN has identified certain risks that threaten investors' protection.

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The commission disclosed that it engaged with the CBN and agreed to work together to further analyse and better understand the risks.

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"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", it announced.

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It said planned implementation of the Regulatory Incubation Guidelines for FinTech firms who intend to introduce innovative models for offering capital market products and services will continue.

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SEC added that it would keep monitoring developments in the digital asset space to create a regulatory structure that enhances economic development and promotes a safe and transparent capital market.

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