With crypto valuations hitting astronomical heights and the total market cap now above $2 trillion, regulators have no option but to take note.
However, due to their unpreparedness for digitizing currency, many countries do not have coherent policies on crypto. A case in point is Nigeria, where the central bank recently issued a directive banning digital currencies. However, this position seems to be contradicted by the country’s Securities and Exchange Commission.
According to the director-general of the Nigerian SEC, Lamido Yuguda, the move by the Central Bank to ban cryptocurrencies was disruptive. Yuguda stated that the ban forced the commission to halt its ongoing process of creating a proper framework for regulating the market.
The commission’s chairman added that with the plans stalled, the situation is likely to remain the same until such a time when exchanges can run bank accounts with Nigerian banks.
Nonetheless, the commission still has plans to create the perfect regulatory environment for Nigerians to trade in cryptocurrencies. Yuguda also noted that the move to ban crypto was counterproductive. In the SEC’s view, the central bank’s move would only serve to take trading underground and make the market even harder to regulate.
The country’s Vice President has also weighed in on the issue, arguing that the government needs to take a more proactive approach towards cryptocurrencies. The Vice President’s view is that with their continued growth. It will be interesting to see how this plays out and its effect on the Nigerian crypto market.
