BREAKING: Good News For Nigeria Youths As FG Lifts Ban on Cryptocurrency

FG has recently lifted ban placed on cryptocurrency exchange in Nigeria. 

The Securities and Exchange Commission (SEC) said in a statement on Thursday: “For the purposes of admission to the regulatory incubation process of the SEC, the evaluation of all persons and products affected by the CBN Circular of 5 February 2021 is hereby suspended until such persons are eligible to operate bank accounts within the banking system of Nigeria,” the SEC stated.

The declaration of the exchange commission came days after the apex bank of Nigeria directed financial institutions in the country to shut down cryptocurrency accounts, saying the transactions posed risks to the economy.

Due to a number of comments and public inquiries that there is a conflict between the SEC Statement on Digital Assets and their Classification and Treatment of September 11, 2020, and the Central Bank of Nigeria (CBN) Circular of February 5, 2021, the SEC said its statement was appropriate.

READ CBN Reveals The Reason For Banning Cryptocurrency Transactions

The SEC said, “We see no such contradictions or inconsistencies.”

Luno, a cryptocurrency trading platform, Luno suspended naira deposits in response to CBN’s circular before “further clarity from the authorities” is received.

The SEC stated that it had made a statement at the time to provide regulatory clarity within the digital asset room, owing to the increasing amount of recorded flows, while the Central Bank had defined some risks that would endanger investor security if permitted to continue.

READ Confusion Sets As SEC Joins CBN To Ban Cryptocurrency Exchange In Nigeria

Following the risks found in the central bank transactions, the SEC stated in its recent statement that: “committed itself to the CBN and agreed to work together to further analyze and better understand the risks identified in order to ensure that adequate and adequate mitigators are put in place if such securities are permitted in the future.”