SEC PRESS RELEASE: “We have engaged with the CBN and agreed to work together to further analyze Crypto securities”
Thank you for reading this post, don't forget to subscribe!
The Securities and Exchange Commission of Nigeria (SEC Nigeria) has put out a Press release to calm all opinions concerning the Policy published on Digital Assets, their classification and Treatment released September 11th, 2020, and the information provided by the CBN’s Circular on 5th February 2021.
According to the press release, this decision has been notified by inquiries from cryptocurrency Exchange CEOs and comments From unsatisfied Nigerians with what seems to imply there is perceived policy conflict between the SEC and the Central Bank of Nigeria (CBN).
Press Release| We have received several inquiries from the public on a perceived policy conflict between the SEC Statement on Digital Assets & their Classification & Treatment of September 11, 2020 & the @cenbank Circular of February 5, 2021. More –> https://t.co/Um2SaadP2E
— SEC Nigeria (@SECNigeria) February 12, 2021
“In recognition of the fact that digital assets may have the full characteristics of investments as defined in the Investments and Securities Act 2007, the SEC Statement asserts that trading in such assets falls under SEC’s regulatory purview, except proven otherwise. The primary objective of the Statement was not to hinder or stifle innovation but to establish standards of ethical practices that ultimately make for a fair and efficient securities market.
In light of these facts, we have 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”.
In light of these new developments, SEC Nigeria has said that it is working with the Central Bank of Nigeria to ascertain steps to take should cryptocurrencies be allowed in the future. The Bodies will work together to ‘further analyze and better understand the identified risks to ensure that appropriate and adequate mitigants are put in place.”
The regulatory agency has also said it is continuously monitoring the developments in the digital space and will further engage all critical stakeholders with a view to creating a regulatory structure that promotes a safe, innovative, and transparent capital market.
The press release also contained that the SEC has stopped all operations of persons and products from admittance into the SEC Regulatory Incubation Framework until they can operate bank accounts within the Nigerian banking system.
“Going against crypto will shut us out of the 4th industrial revolution,” says a crypto Enthusiast on Twitter in response to the Press Release by SEC
We missed out on the 1st, 2nd and 3rd Industrial Revolutions. Going against the cryptos will definitely shut us out of the 4th industrial revolution. we can harness the opportunity to save against the weak economy by saving some portions of our reserve in bitcoin. #Tech4growth
— Tee S. (@Drtee202) February 12, 2021