TL;DR Breakdown
- The Nigerian SEC says it will provide a regulatory structure for crypto transactions.
- It reveals that the crypto market is too large to be ignored, even though it’s a front for fraudulent activities.
Nigerian government sets to regulate the crypto market
Some weeks ago, the Nigerian government placed a ban on cryptocurrency transactions in the country. It consequently cautioned banks to cut ties with all crypto trading activities and shut down all crypto-related accounts or stand the risks of charges. However, in a virtual meeting on Sunday, the SEC has said that the crypto market is too large to be ignored.
Nigeria’s Securities and Exchange Commission (SEC) has revealed its stance on cryptocurrency after it promised to set up a well-defined cryptocurrency regulatory structure in the country. Based on a report, the SEC and the Central Bank of Nigeria are set to work together to regulate cryptocurrency transactions in the country.
Crypto market too large to be ignored
It appears that the reason for the crypto ban in the first place was its use as a front for fraudulent activities. Kevin Amugo, the director of financial policy and regulation at CBN, said that the Central Bank needed the ban to create enough time to tackle the anonymous nature of crypto transactions.
As a result of the ban retail traders, crypto exchanges and startup firms were hugely affected as all crypto transactions came to a halt. Regardless of the ban, the youths remained positive about the ban saying it wouldn’t last and that transactions will return to normal.
However, the news from the SEC is a glimpse of hope for Nigerians as this may mean that the ban will soon be reversed. The SEC revealed that it is hard to ignore the cryptocurrency market, which has about $1 trillion in market cap. It also noted that the market is full of several opportunities for ICOs and derivatives.
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