Recently has suspended its planned crypto regulation following the ban on central banks , the Securities and Exchange Commission of Nigeria has clarified its position on cryptocurrencies in the country.
According to a report by Premium Times, SEC and Central Bank of Nigeria will work in collaboration to the design of a concrete regulatory framework for cryptos in Nigeria.
For Timi Agama, the commission's head of registration, trade, market infrastructure and innovation, Nigerian regulators cannot afford to ignore the $ 1.74 trillion crypto market.
Speaking at a virtual conference hosted by As Society of Nigerian Capital Market Academics in the capital, Abuja, on Sunday, Agama noted:
According to Agama, the SEC views cryptos as a channel to attract much-needed foreign direct investment or FDI into the country. Indeed, according to a recent report from the National Bureau of Statistics, 26 of the 36 states of the federation received no IDE during the whole of 2020.
For Kevin Amugo, director of the poThe CBN's financial litigation and regulation, the ban was necessary to give the central bank ample time to process the anonymity of crypto transactions.
However, most crypto transactions are pseudonymous at best. Blockchain intelligence companies like CipherTrace and Chainalysis have created tools to robust forensic cryptocurrency investigation .
Additionally, cryptocurrency exchanges in Nigeria followed Know Your Customer best practices, which included Bank Verification Number or BVN authentication.
During the ACMAN conference, Amugo revealed that the CBN and the SEC are working with other federal agencies to develop a national regulatory approach to cryptos in Nigeria.
During the event, severalstakeholders called on regulators to enforce more nuanced laws rather than outright bans.
As previously reported by Cointelegraph, Nigeria and South East Asia were located at forefront of global adoption in 2020 . Nigeria's Bitcoin Premium (BTC) is currently the most popular the most high in the world following the CBN ban.