The Nigerian Securities and Exchange Commission(SEC) has backed the Central Bank of Nigeria(CBN) ban of Cryptocurrencies by suspending its earlier planned regulatory framework for digital assets.
The SEC’s decision to put plans for regulating cryptocurrencies on hold was following the recent ban by the apex bank prohibiting financial institutions from servicing crypto exchanges.
SEC on Friday 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 February 5, 2021, is hereby put on hold until such persons are able to operate bank accounts within the Nigerian banking system.”
The regulatory agency had earlier in September 2020 recognized digital assets. At the time, the commission said it was set to create a regulatory sandbox for cryptocurrencies as part of efforts to fully regulate the market.
The agency’s latest statement is in response to inquiries from stakeholders as to the perceived policy conflicts between its earlier announcement and the central bank circular.
SEC however noted that the regulatory sandbox proposal for non-crypto fintech firms focusing on the capital market will still continue as planned.