The Nigerian government might be undergoing some internal problems as the country’s senate requests for Central Bank of Nigeria’s Governor Godwin Emefiele and another regulator, Lamido Yugada, on the recent cryptocurrency ban. Some days ago, the country’s apex bank, the Central Bank of Nigeria, released a circular, which warned financial institutions against aiding exchanges and other crypto-related firms.
In 2017, the regulator had declared cryptocurrencies dangerous because, according to them, the assets aided money laundering and terrorism. Still, the body’s opinion concerning cryptos has not changed with the new announcement. The central bank said the investment class’s risk necessitated the ban, making it unsuitable as an investment. The news and controversy surrounding the ban made the senate summon the regulators to testify.
Nigerian Senate requests for regulators
The Nigerian legislature called regulators’ attention responsible for the new prohibition, which mandates financial institutions to stop rendering some services to exchanges and crypto holders. The senate wants to understand the reason behind the sudden ban. Some sources explained that the senate’s banking committee to summon the head of its Securities and Exchange Commission, Lamido Yuguda, and CBN governor, Godwin Emefiele, to speak to the senate about the threats and benefits that cryptocurrencies could bring to the country.
The Nigerian senate shared this new information through its Twitter page, caused by the uproar on social media. Many Nigerians shared their displeasure on the ban and opined that the body did not adequately consult the public before making such decisions.
Also read:Some natives wrote numerous letters to the regulatory body to ask for clarity on it’s the new law. This made the apex bank release more information while highlighting some dangers of cryptocurrencies, assured that it would protect Nigerians from crypto investments due to the risk associated with it.
The regulator had explained through a recent message that it would educate Nigerians on the dangers of cryptocurrencies to protect the financial system from the presence of scammers and speculators. The Central Bank of Nigeria had declared cryptocurrencies a speculative asset some years ago, which discouraged their use. The senators want the experts to clarify some necessary details.
The Nigerian senate speak against crypto banning
Some Nigerian senate members shared their displeasure with CBN’s prohibition and encouraged the sector’s regulation and not an outlawing of the growing industry. One of the Senators, Senator Basset Akpan, said that crypto is the next level and that Nigeria has to embrace it. The advocate added that the apex bank should take Nigerians to the next level and not prohibit it.
Another senator explained that he understands that cryptocurrencies have both advantages and demerits while hoping that the regulator would educate the people on both the sector’s risks and advantages.
Solomon Adeola, another senator, said that he opposed the body’s banning of the digital assets industry and added that the Central bank should regulate the platform instead of completely banning it. The Nigerian senate announced that the senate would make another declaration after the Central bank’s governor briefs it on the possible opportunities and challenges it would face with the platform.
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