According to the governor of the Central Bank of Nigeria, the Securities and Exchange Commission is responsible for regulating cryptocurrencies. However, the governor said the central bank will collaborate with law enforcement agencies and regulators overseeing the Nigerian crypto sector.
The Central Bank’s Change of Heart
In a surprise announcement, Yemi Cardoso, governor of the Central Bank of Nigeria (CBN), said cryptocurrency regulation is not the responsibility of his organization. Cardoso made these remarks during a media event, stating that this role is assigned to the Nigerian Securities and Exchange Commission (SEC).
Cardoso’s comments came just days after a Binance executive, who was being held by the Nigerian government, escaped from custody and left the country. The Office of the National Security Adviser, which confirmed the Binance executive Nadeem Anjarwalla’s escape, has promised to engage Interpol over the issue.
Before Cardoso’s latest comments, the CBN under the leadership of the now incarcerated Godwin Emefiele, had actively sought to oversee the Nigerian cryptocurrency industry. At one point, the bank seemed to usurp the SEC after it issued a directive barring financial institutions from servicing crypto entities. This directive, issued Feb. 5, 2021, appeared to contradict crypto guidelines released by the SEC on Sept. 14, 2020.