Nigerian minister has urged the country’s authorities to consider regulating cryptocurrencies rather than cracking down on them.
A minister of the Nigerian government demanded the regulation of cryptocurrencies in what seems to be a rebuke of CBN’s stance on cryptocurrency.
Clem Agba, the minister of finance, suggests that Nigeria would benefit more from forward-looking regulation than simply clamping down companies that facilitate crypto transactions. Agba’s remarks published on Bloomberg also question the claim by the CBN that it has the authority to regulate cryptocurrencies. But, there is no law granting such a mandate.
Agba said that, as our laws are not able to specify who controls cryptocurrency regulation, an additional body may be needed.
Prior to the CBNs directive dated February 5, 20,21, both the Nigerian Securities and Exchange Commission and the central banking had fought for control of cryptocurrency. According to Bitcoin.com News’ September 2020 report, the Nigerian SEC had identified crypto-currencies as securities in its crypto guidance document.
However, the CBN ordered banks to prevent crypto entities from accessing financial systems, and the SEC then announced that it had suspended the guidelines. Since then, Nigeria’s sole regulator of cryptocurrency has been the CBN.