we acted in the best interests of the nigerians – Emefiele
The Governor of the Central Bank of Nigeria (CBN) Godwin Emefile said that the bank’s decision to prohibit depository banks, non-bank institutions and other financial institutions from facilitating cryptocurrency trade and transactions is in the interests of depositors, Nigerians and the country’s financial system.
This was announced yesterday by Emefile, informing the Senate’s mixed commission on banks, insurance companies and other financial institutions; ICT, Cybercrime and Capital Markets Directive for Institutions under Leading Bank Rules.
Calling cryptocurrency transactions dangerous and opaque, the CBN governor stated that the use of cryptocurrency violates existing law. He said that the fact that the cryptocurrencies were issued by unregulated and unlicensed organizations caused him to contradict apex bank’s mandate enshrined in the CBN Act (2007) by declaring it a legal tender in Nigeria.
Emephile, who also distinguished between digital currencies that central banks can issue and cryptocurrencies issued by unknown and unregulated organizations, pointed out that the anonymity, obscurity and hiding of cryptocurrencies made them suitable for those involved in illegal activities such as money laundering. financing of terrorism. , purchase of small arms and light weapons and tax evasion.
Referring to cases of investigated criminal activity that involved cryptocurrencies, he said that the legitimacy of money and the security of Nigeria’s financial system were central to the CBN’s mandate, although he stated that “cryptocurrency is not legal money” because it is not created or supported by some central bank.
“There is no place for cryptocurrencies in our monetary system now, and transactions with cryptocurrencies should not be carried out through the banking system of Nigeria,” he added. Emefile further indicated that the bank’s actions were in no way hostile to the development of FinTech or a technology-based payment system. On the contrary, he noted that Nigeria’s payment system has evolved significantly over the past decade, surpassing many of its peers in emerging market, borderline and developed economies, supported by reforms led by CBN.
Calling for caution on the cryptocurrency issue, the CBN Governor assured that the Bank will continue to monitor and deepen its understanding of the digital space, noting that the ultimate goal of CBN is to do whatever is required of it. Its regulatory mandate is to inform Nigerians of emerging financial risks and to protect our financial system from the activities of international currency speculators, money launderers and fraudsters.
• The CEO of the Securities and Exchange Commission also spoke
(SEC) Lamido Yuguda made it clear that there is no political conflict between
CBN directive and SEC statements on this matter
cryptocurrencies in Nigeria. He explained that the SEC made a decision
time to provide regulatory confidence in the digital asset space through growth
the amount of detected defects.
He said that prior to the adoption of the CBN directive, the SEC had warned the public in 2017 about
risks associated with investing in digital and cryptocurrency, adding that CBN, Nigeria
Also the Deposit Insurance Corporation (NDIC) and SEC from 2018 to 2020.
warned about the lack of investment protection in cryptocurrency.
Yuguda also said the SEC had suspended the file in accordance with the CBN directive.
admission of all persons affected by the CBN circular in its legislative proposal
incubator structure to ensure that only operators who fully comply
with existing laws and regulations are allowed under digital regulation
Likewise, the President of the Independent Corruption Division and other related
Commission on Crime (ICPC), prof. Boladzhi Ovasanoe highlighted the inherent risks
invest in virtual assets and cryptocurrencies in Nigeria.
He explained that cryptocurrencies pose serious legal and law enforcement risks to
Nigeria due to its opaque nature and illegal financial flows, adding that the current move
the federal government to link national identification numbers to SIM cards
indicates that terrorists, kidnappers, bandits and perpetrators of unlawful acts
he relied on the protection provided by anonymity to commit heinous crimes.
Earlier in his welcoming speech, the Chairman of the Senate Joint Committee e
Chairman of the Senate Commission on Banks, Insurance and Other Financial Institutions,
Senator Uba Sani said the committee is in fact-finding and has no
previous recommendation or position and will state his position only after
he studied the comments provided by stakeholders.
Source: – Sunnews