Crypto Ban: Senate Summons CBN, SEC Boss

The Senate on Thursday summoned the Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, and Director General of the Security and Exchange Commission (SEC), Lamido Yuguda, over the decision of the CBN to ban the use of cryptocurrency in the country.

The summon follows a motion by Senator Istifanus Gyang and Tokunbo Abiru, titled, “CBN's decision to stop financial institutions from transacting in cryptocurrencies and matters arising therefrom.”

Ahmed Lawan, the Senate President asked the committees on Banking, Insurance, and other financial institutions, Capital Market, and that of ICT and cybercrime to summon and listen to Emefiele and Yuguda and submit their report for the consideration of the Senate in plenary within two weeks.

The CBN governor and DG SEC are expected to brief the panels on the opportunities and threats of the cryptocurrency on the nation’s economy.

Leading the debate on the issue, Gyang noted that the CBN issued a directive stopping all financial institutions from transacting in cryptocurrencies.

He said the CBN's decision was a follow up to its earlier directives in January 2017 and February 2018 which ordered banks against holding, trading and/or transacting in cryptocurrencies.

READ MORE: Crypto Ban: Trading Platform Launches Payment Gateway to bypass CBN policy Six days after Memo

Gyang who in his debate supported CBN directives explained that the apex bank was associated with having no accountability and regulation over cryptocurrency and that incapacitates the apex bank in performing its function of oversight, contravening the authorised law to issue legal tender.

However, he appealed to the senate to checkmate the decision after expressing his concern that cryptocurrency by nature was anchored on anonymity, obscurity and concealment of its patrons and actors and can be used for illicit activities including; money laundering, terrorism financing, drug purchase, cybercrime, among others.

 “Cryptocurrency is both an opportunity and a threat, hence the Senate has a responsibility to ensure that the nation and citizens do not miss out on the opportunities that Cryptocurrency offers," he said.

“In the same vein, the Senate intervention could mitigate and prevent likely consequential effects on the nation’s economy and security.”

The Central Bank issued a memo directing all banks and Financial institution to close all accounts used for Cryptocurrency trading in Nigeria while in October 2020, Securities and Exchange Commission after monitoring the volume of transactions going klingon Crypto trading legalised and categorize crypto trading in Nigeria under Securities.