Nigerian government minister calls for crypto regulation and considers an additional entity to play that role” – regulation

A Nigerian government minister has urged the country's authorities to consider regulating cryptocurrencies rather than restricting them.

The law does not dictate who regulates cryptos

In an apparent rebuke to the Central Bank of Nigeria (CBN) over its stance on cryptocurrencies, a Nigerian government minister has called for cryptocurrencies to be regulated.

Instead of cracking down on companies that facilitate crypto transactions, Minister Clem Agba argues that forward-looking regulation would prove more beneficial for Nigeria. In notes published from Bloomberg, Agba also appears to question the assertion that the CBN has the right to regulate cryptocurrencies, when in fact there is no law giving a regulator such a mandate.

“As our existing laws cannot explicitly identify who has the authority to regulate cryptocurrencies, an additional body may be required to take on this role,” explained Agba.

Before the CBNs directive As of February 5, 2021, both the Nigerian Securities and Exchange Commission and the Central Bank had been fighting over the control of cryptocurrencies. In fact, as reported by Bitcoin.com News in September 2020, the Nigerian SEC had set Cryptocurrencies as securities in its crypto policy document.

However, after the CBN ordered banks to block crypto companies' access to the financial system, the SEC announced that they suspended the guidelines. Since then, the CBN appears to be the only Nigerian regulator overseeing the country’s cryptocurrency industry.

All stakeholders are key players

Meanwhile, in his comments on this state of affairs in the crypto space, the minister said:

It is crucial for everyone involved to view every player as an important teammate for a healthy crypto space in Nigeria.

Despite the CBN’s relentless fight against cryptocurrencies, Nigerians have continued to use and demand the assets. In October, Bitcoin.com News reported in a Finder survey that shows Nigeria has the highest percentage of cryptocurrency ownership in the world.

What do you think of the Nigerian minister's comments? Tell us what you think in the comments below.

Terence Zimwara

Terence Zimwara is an award-winning journalist, author and author in Zimbabwe. He has written extensively about the economic woes of some African countries and how digital currencies can provide an escape route for Africans.

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