The Central Bank of Nigeria (CBN) has clarified that regulating cryptocurrency transactions in the country falls under the purview of the Securities and Exchange Commission (SEC), not the central bank itself.
CBN Governor Olayemi Cardoso made this statement at the 294th Monetary Policy Committee (MPC) meeting held on Tuesday.
Cardoso also mentioned that the CBN’s cooperation with the SEC, the Economic and Financial Crimes Commission (EFCC), and the Office of the National Security Adviser has produced favorable results over the past month.
Responding to an inquiry about the central bank’s stance on the crypto exchange platform Binance, which has faced significant scrutiny from the Federal Government since the previous MPC meeting in February, Cardoso reiterated the concern over $26 billion in suspicious transactions processed through Binance last year.
On Tuesday, Cardoso emphasized, “We see ourselves as fully equipped to work in conjunction with other government agencies, which is a crucial role for us.”
“About a month ago, we engaged in a collaboration with law enforcement agencies, including the EFCC and the SEC, along with other regulatory bodies. The outcome is still a work in progress, but it’s shaping up positively, from what I can tell.
“As for the NSA, we have been exchanging information. However, in this specific instance, the task of regulating cryptocurrency does not fall within our purview; it is solely the jurisdiction of the Securities and Exchange Commission, not ours.”
Turning The Heat On Crypto Traders
Nigeria is grappling with escalating inflation, a forex crisis, economic difficulties, and an increased cost of living due to the removal of petrol subsidies, leading to protests in various regions as the naira’s purchasing power and the disposable income of Nigerians diminish.
In the past nine months, the Nigerian naira has depreciated significantly since President Bola Tinubu’s administration eliminated the foreign exchange window. This has caused the prices of goods to soar, with some doubling in cost as the naira hit a record low, dropping from around N700/$1 last May to approximately N2,000/$1 last month, before it started to recover in March.
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Authorities have shifted their attention to cryptocurrency platforms such as Binance, alleging them of speculative activities.
Last month, the NSA office detained two Binance executives who were in Nigeria for discussions with the government. One of the individuals, Nadeem Anjarwalla, managed to escape from lawful custody, prompting the government to initiate a manhunt and contact Interpol.
Subsequently, the government filed tax evasion charges against the platform, Anjarwalla, and his associate Tigran Gambaryan.
Additionally, the government sought a court order to force Binance to disclose the names of its Nigerian traders, but the platform has resisted.
