At present, Nigeria has suspended all regulatory activities on cryptocurrencies due to the ban imposed by the central bank and so, the country's Securities and Exchange Commission wanted to clarify its position on digital currencies.
A market worth more than $ 1,74 trillion!
According to a recent report by the Premium Times, both the Nigerian Central Bank and the SEC will work together to devise a concrete regulatory framework to regulate cryptocurrencies in the African country, where the largest number of bitcoins are exchanged alongside South Africa and Kenya.
For Timi Agama, the Commission's head of registration, exchanges, market infrastructure and innovation, Nigerian regulators cannot afford to ignore the crypto market that is now worth $ 1,74 trillion.
Speaking last Sunday at a virtual conference organized by the Nigerian Capital Market Academics Association in Abuja, Agama said: “Part of the SEC's desire is to provide a regulatory framework that addresses all of these challenges we have seen. internationally and with which the whole world is grappling in terms of cryptocurrency and digital assets. For us in the SEC and the capital market, it is something we must observe, the world cannot move forward and we remain firm on our positions ”.
According to Agama, the SEC sees cryptocurrencies as a conduit to attract much needed foreign direct investment, or FDI, to the country. In fact, according to a recent report from the National Bureau of Statistics, 26 of the federation's 36 states have not received any FDI in all of 2020.
For Kevin Amugo, CBN's director of financial policy and regulation, the ban was necessary to give the central bank ample time to address the issue of anonymous crypto transactions.
Yet there is no 100% anonymity
However, most crypto transactions are pseudonymous at best. Blockchain intelligence firms like CipherTrace and Chainalysis have created tools that enable robust forensic investigations into cryptocurrency.
Additionally, cryptocurrency exchanges in Nigeria adhered to Know Your Customer best practices which included the bank verification number, or BVN, for authentication.
As part of the speech at the ACMAN conference, Amugo revealed that CBN and the SEC were working with other federal agencies to develop a national regulatory approach to cryptocurrencies across Nigeria.
During the event, several stakeholders called on regulators to pursue softer laws rather than outright bans.
As previously reported, Nigeria and Southeast Asia were at the forefront of global adoption in 2020. The Bitcoin Award (quotation BTC) of Nigeria is currently the highest in the world after the CBN ban.
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