Girl students pass a classroom with the map and flag of Nigeria
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.

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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.

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