Nigerian Government Minister Calls for Regulation of Crypto, Considers Additional Body ‘to Play That Role’

A minister in the Nigerian government has called on authorities in the country to consider regulating cryptocurrencies instead of clamping down on them.

The Law Does Not Stipulate Who Regulates Cryptos

In what appears to be a rebuke of the Central Bank of Nigeria (CBN) over its stance on cryptocurrencies, a minister in the Nigerian government has called for the regulation of cryptocurrencies.

Rather than clamp down on companies that facilitate crypto transactions, the minister, Clem Agba, argues that forward-thinking regulation would prove more beneficial for Nigeria. In remarks published by Bloomberg, Agba also appears to question the claim that the CBN has the right to regulate cryptocurrencies when in fact there is no law giving any regulatory body such a mandate.

“Since our existing laws cannot explicitly stipulate who holds the power to regulate cryptocurrencies, there may be a need for an additional body to play that role,” explained Agba.

Prior to the CBN’s directive on February 5, 2021, the Nigerian Securities and Exchange Commission, as well as the central bank, had both vied for the control of cryptocurrencies. In fact, as reported by Bitcoin.com News in September 2020, the Nigerian SEC had designated cryptocurrencies as securities in its crypto guidelines document.

However, after the CBN directed banks to block crypto entities’ access to the financial system, the SEC announced it had suspended the guidelines. Since then, the CBN now appears to be the only Nigerian regulator that is overseeing the country’s cryptocurrency industry.

All Stakeholders Are Key Players

Meanwhile, in his comments on this state of affairs in the crypto space, the minister said:

It is crucial for all stakeholders to view each player as a key teammate toward a healthy crypto space in Nigeria.

Despite the CBN’s unrelenting fight against cryptocurrencies, Nigerians have continued to use and demand the assets. In October, Bitcoin.com News reported on a Finder survey showing that Nigeria had the highest rate of cryptocurrency ownership globally.

What is your view of the remarks that were made by the Nigerian minister? Tell us what you think in the comments section below.

Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

Image Credits: Shutterstock, Pixabay, Wiki Commons