Cardoso Yemi, Nigeria’s Central Bank Governor just announced through news conference today that cryptocurrencies will now be regulated by SEC instead of CBN unlike before.
This announcement is entirely different from those done previously by CBN under Godwin Emefiele’s tenure. CBN had previously adopted a hardline stance towards cryptos by instructing deposit money banks to cease transactions with crypto exchanges in 2021. This move, which contradicted the SEC’s 2020 guidelines that recognized it as the regulator of the crypto market, generated a lot of confusion and anxiety among Nigerian cryptocurrency enthusiasts.
However, Governor Cardoso’s recent statement clears the air, signifying a pivotal shift. The CBN is stepping back to let the SEC take the lead in regulating the crypto industry. This transition suggests a more collaborative approach moving forward, involving various regulatory bodies in the oversight of the cryptocurrency market.
Collaboration coupled with Recent News Generates Talk
The development that Binance executive escaped from National Security Agency custody in Nigeria coincided with this shift of responsibility for regulation purposes. Because of this event, talks have already begun within Cryptocurrency community and NSA has asked Interpol to assist them.
This shifting sentiment towards crypto regulation on part of cbn mirrors broader transformation happening across Nigeria’s digital asset landscape. It is crucial to note that initial guidance by SEC was seen as progressive step towards recognizing digital assets while still CBN stopped these moves momentarily under Emefiele.
There are high hopes of a more crypto-friendly regulatory framework in Nigeria’s future with the recent CBN call for cooperation with SEC and other agencies. This is expected to foster innovation and investment within the digital asset space by providing clearer definitions of roles and responsibilities among regulators hence creating an enabling environment for the growth of the industry.
