SEC., Has revealed crypto currency that there was no policy conflict between the top regulators of capital markets and the Central Bank of Nigeria (CBN) to ban cryptocurrency currency transactions in the banking industry.

 The Securities and Exchange Commission (SEC) revealed that there was no policy conflict between the top regulators of capital markets and the Central Bank of Nigeria (CBN) to ban cryptocurrency currency transactions in the banking industry.

The SEC explained in a statement shared through the website and seen by Naramichis that contrary to what some parties believe is a policy conflict, it has not seen such contradictions or inconsistencies.

Recognizing that digital assets may have the full characteristics of investments as defined in the Investment and Securities Act of 2007, it points out that transactions of such assets fall within the custody of the Securities and Exchange Commission, unless this is proved to be the case.

It pointed out: "The main goal of the statement is not to hinder or stifle innovation, but to establish ethical standards and ultimately achieve fair and efficient securities markets.

Due to the increasing reporting flow, the U.S. Securities and Exchange Commission issued a statement at that time to provide regulatory certainty within digital asset space. Subsequently, as the regulator of the banking system, the CBN identified certain risks that, if allowed to continue, would threaten investor protection, a key task of the SFC, and the stability of the financial system, which is a key task for central banks.

In view of these facts, "we have contacted CBN and agreed to work together to further analyze and better understand the identified risks to ensure that appropriate and adequate mitigation measures for such securities are allowed in the future."

SEC's position on capital market finance technology

In order to enter the SEC regulatory incubation framework, we hereby suspend the evaluation of all people (and products) affected by the CBN notice of February 5, 2021 until they can operate bank accounts within the Nigerian banking system.

It is planned to continue to implement the SEC regulatory incubation guide for financial technology companies that intend to introduce innovative models to provide capital market products and services.

The SEC will continue to monitor the development of digital asset space and further engage all key stakeholders with a view to establishing a regulatory structure to promote economic development while promoting safe, innovative and transparent capital markets.

Four days ago, Nayramichs reported that the CBN insisted that its latest restrictions were not new, but only reminded us that the earlier notice date was January 2017.

It said: "With regard to our recent policy statement, it must be clarified that the CBN notice of February 5, 2021 did not impose any new restrictions on cryptocurrencies, because earlier, all banks in the country had passed the CBN notice of January 12, 2017. It is prohibited to use, hold, trade and/or trade in cryptocurrencies.

The top bank further said that the ban on encryption is not unique to Nigeria, because several other countries around the world have also imposed some restrictions on financial institutions to promote encryption transactions.