Nigeria’s SEC Suspends Plans to Regulate Cryptocurrencies and Dealers

Nigeria’s Securities and Exchange Commission has said it is putting on hold its initial plans to regulate cryptocurrencies. The commission, however, disclosed it will go ahead with the plan when the cryptocurrency dealers open bank accounts in the country.

Just last week, the country’s regulatory bank, the Cetral Bank of Nigeria, ordered financial institutions to close accounts dealing in cryptocurrencies, saying the transactions posed risks to the economy, but those measures are now on hold.

In a statement, the Abuja based SEC said, “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 can operate bank accounts within the Nigerian banking system.”

The agency had in September said it viewed cryptocurrencies as exchangeable securities and would regulate them to provide protection for investors and to ensure the transactions are transparent.

Following risks identified in the transactions by the central bank, the SEC “engaged with the CBN and agreed to work together to further analyze, and better understand the identified risks to ensure that appropriate and adequate mitigants are put in place, should such securities be allowed in the future,” it said in its latest statement.