Since February of 2021, the Central Bank of Nigeria (CBN) has banned cryptocurrencies in the country. Since then, the financial institutions in Nigeria have had an ax hanging over their head. This is because the CBN has released clear instructions that no financial firm in Nigeria be find mingling with crypto firms.
Now, the regulatory authorities in the country are aiming to come up with new regulations to make them more regulated. This way, the regulatory authorities in Nigeria are aiming to offer the investors a safer and protected environment. This safety is for the investors who are dealing with the cryptocurrency markets through a peer-to-peer system.
On Thursday, September 2, 2021, the Securities and Exchange Commission (SEC) of Nigeria has made a new announcement for the crypto and digital assets sector. The SEC has announced that it has introduced a fintech division that will be dedicated to the cryptocurrency industry.
The responsibility that the particular division would have would be the thorough and detailed study of the blockchain and cryptocurrency investments. Furthermore, the fintech division would ensure it does its research and gathers as much knowledge as possible for crypto-blockchain-related products.
The SEC of Nigeria has announced that after carrying out careful analysis and research of the products, it would help in the regulatory procedure. The main goal of the particular division would be to introduce a strong and dependable regulatory framework for the crypto-blockchain sector.
Lamido Yuguda, the director-general of the Securities and Exchange Commission has provided more clarity on the division’s responsibilities. He stated that the division will be paying a much closer look at the sector to know exactly how the sector is being run.
After running a careful analysis of the situation, the division will move on to the next step of coming up with a strategy around crypto-blockchain procedures. It will go through the possibilities of implementing the right kind of processes and procedures into the crypto-blockchain sector for more regulatory control.
Yuguda stated that all the efforts of introducing a new regulatory framework as well as studying the market would be for the welfare of the investors. Investors need a lot of protection and safety when performing trades and investing money on crypto-related platforms.
Therefore, the fintech division would ensure that the investors are provided with the right kind of support and benefits.
This is yet another positive sign from the Central Bank of Nigeria as to what it plans on doing with cryptocurrencies. Initially, it was believed that the CBN has banned cryptocurrencies for good but now the situation has changed.
With the CBN’s recent interest in bringing reforms to the crypto-blockchain sector, the Nigerian crypto-community is hopeful about re-instating cryptocurrencies in the country.