Nigeria Abandons Plans to Regulate Cryptocurrency
- New regulation was put on hold after the Central Bank of Nigeria ordered banks to close crypto accounts.
- The SEC said it will work with the Central Bank to better understand and regulate the asset class in the future.
Girl students pass a classroom with the map and flag of Nigeria painted on it at Success Private School in Maiduguri, Nigeria on 9 September 2015. Shutterstock
Plans to regulate digital assets in the country were put on hold after the Central Bank of Nigeria (CBN) ordered banks to close accounts transacting with cryptocurrencies.
“For the purpose of admittance into the SEC regulatory incubation framework, the assessment of all persons and products affected by the CBN circular of Feb. 5, 2021, is hereby put on hold until such persons are able to operate bank accounts within the Nigerian banking system,” the SEC said in a statement.
According to The Guardian Nigeria, the SEC received comments and inquiries from the public stating there was a conflict between the SEC’s 2020 definition of digital assets and their 2021 classification by the Central Bank of Nigeria (CBN). Despite halting plans for new regulations, the SEC stood firm in its conviction that no such contradictions and inconsistencies exist.
Back in September, the SEC announced it planned on regulating cryptocurrencies to protect investors and ensure the transactions remain transparent. It also defined cryptocurrencies as tradeable securities and said it will work with CBN to better understand and regulate the asset class.
- Crypto.com has once again expanded its regulatory achievements with the acquisition of a major payment institution license for digital payment token services in Singapore.
- The license, for which the company received an in-principle approval last June, enables the exchange to provide a greater range of payment services in Singapore.
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- The current governor of Florida, Ron DeSantis, announced he is joining the race for the 47th president of the U.S. during a Twitter Spaces event on Wednesday.
- During his speech DeSantis declared his support for Bitcoin and the wider crypto space, noting that if Joe Biden is re-elected “they’ll probably end up killing it”.
- All virtual asset service providers (VASPs) in the UAE are now required to submit a licensing application with the Securities and Commodities Authority.
- Firms that have already acquired a license in the UAE’s financial free zones will be exempted from the requirement, but those in Dubai will still need to apply with the SCA.