The Central Bank of Nigeria (CBN) has clarified that the regulation of cryptocurrency transactions in the country falls under the purview of the Securities and Exchange Commission (SEC), rather than being the direct responsibility of the apex bank. CBN Governor Olayemi Cardoso made this assertion during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) held in Abuja on Tuesday, coinciding with the MPC’s decision to raise the interest rate from 22.75% to 24.75%.
Cardoso emphasized the collaborative efforts between the CBN, SEC, the Economic and Financial Crimes Commission (EFCC), and the Office of the National Security Adviser, highlighting positive outcomes achieved in the past month. His remarks came in response to inquiries regarding the CBN’s stance on the regulation of the cryptocurrency exchange platform Binance, which has faced increased scrutiny from the Federal Government since the previous MPC meeting in February. During that meeting, the CBN governor had revealed that $26 billion in suspicious flows had passed through Binance the previous year.
The CBN governor underscored the institution’s ability to collaborate effectively with other government agencies, stressing the significance of this collaborative function. This statement reflects the CBN’s approach to addressing regulatory challenges in the cryptocurrency sector, signaling a coordinated effort among relevant authorities to ensure compliance and mitigate risks associated with digital asset transactions.
In navigating the evolving landscape of digital finance, the collaboration between the CBN and other regulatory bodies becomes paramount in fostering a regulatory framework that promotes financial stability, transparency, and consumer protection. Cardoso’s remarks underscore the importance of inter-agency cooperation in addressing emerging financial risks and safeguarding the integrity of the Nigerian financial system.
Cardoso said, “We consider ourselves as having the wherewithal to collaborate with other agencies of government and that is a very important function for us.
“About a month ago, we actually did have collaboration with law enforcement agencies, EFCC, the SEC and other regulatory bodies as well, and what came out of that, is a work in progress, but very positive as far as I can say.
“The NSA, we’ve been sharing information together. However, in this particular case, the responsibility for regulating cryptocurrency is not our role, it isn’t ours; it is strictly that of the Security and Exchange Commission, not our responsibility.”