Nigerian Central Bank Refuses To Set Domestic Crypto

Nigerian Central Bank does not want to interfere in matters of domestic crypto regulation. (Photo; Doc. AMG Logistics)

JAKARTA - Recently, the Governor of the Central Bank of Nigeria (CBN) Yemi Cardoso gave a surprising public statement regarding crypto asset regulation. Firmly speaking, Cardoso stated that the responsibility of crypto asset regulation is not under the authority of CBN, but is the task of the Nigerian Securities and Exchange Commission (SEC). This statement was made at a press conference highlighting the new dynamics in regulating the crypto industry in Nigeria.

Cardoso' comments come amid controversy involving Binance executive Nadeem Anjarwalla, who managed to escape Nigerian government custody and left the country. This incident sparked a reaction from Nigeria's National Security Adviser Office, which promised to cooperate with Interpol to handle the case of Anjarwalla's escape.

Previously, under the leadership of Godwin Emefiele who is now in prison, CBN appeared to be trying to take over the SEC's role by issuing a ban on financial institutions to serve crypto entities. This move contradicts the guidelines issued by the SEC in September 2020, which is actually welcomed by crypto industry players in Nigeria because it is considered a step towards recognizing crypto assets.

However, recent reports from Narametrics suggest that CBN is now comfortable with the SEC leading crypto asset regulations. Cardoso also confirmed that CBN is ready to cooperate with law enforcement and other regulators in regulating the industry.

We have shared mutual information. However, in this special case, the responsibility to regulate crypto assets is not our role. It doesn't belong to us. It is entirely the responsibility of the Securities and Exchange Commission (SEC). That's not our responsibility," Cardoso said.

Meanwhile, when asked about Binance's executive detention, Cardoso stated that only relevant government branches could provide comments. This situation adds to the complexity in the crypto asset regulatory map in Nigeria, which is now awaiting concrete steps from the SEC to provide clarity and legal certainty for industry players.

Therefore, any crypto transaction involving the US dollar will have a significant impact on the exchange rate and local economy. This incident demonstrates the importance of inter-institutional cooperation in regulating dynamic and growing sectors such as crypto assets, not only in Nigeria but also around the world.