The Nigerian Senate has opposed the Central Bank of Nigeria ban on cryptocurrency trading. The Apex Bank had recently released circular prohibiting financial institutions from dealing with crypto related entities.
The circular also warned financial institutions of regulatory sanction if they do not comply. In the circular, the CBN ordered financial institutions to close down accounts of individuals and entities involved in crypto related activities. In another document, the Central Bank claimed cryptocurrencies are anonymous and are used for illegal activities.
The Nigerian Senate meeting today, the 11th of February, 2021 invited the CBN Governor, Godwin Emefiele to explain the ban on cryptocurrrency trading.
The law makers frowned at the action of the Banker’s Bank. Senator Abiru Tokunbo said the ban will not be sufficient to solve the reasons for the ban as outlined by the Apex Bank. He said quoting “Even our Security Exchange Commission (SEC) also recognized cryptocurrency as a financial asset they need to regulate”
The motion was raised by both Senator Abiru and Senator Istifanus Gyang.
Another Senator speaking on the issue, Senator Solomon Adeola expressed distaste for the CBN’s ban saying “all over the world cryptocurrencies are regulated. The operators of these so called currencies are everywhere”.
With several frowning at the CBN’s ban, Senator Sani Musa claimed the Nigeria economyis prey to cryptocurrency trading. He claimed Bitcoin has made the naira almost valueless.
At the plenary session, the Senators passed a motion for the CBN Governor, Godwin Emefiele to appear before the Joint Committee on Banking, Insurance and Other Financial Institutions, ICT and Cybercrimes, and Capital Market. And he is expected to explain the opportunities and threats of cryptocurrency trading in Nigeria’s economy and security.