The Nigerian Securities and Exchange Commission (SEC) claims that the central bank’s crypto ban has caused business disruption.

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The Nigerian Securities and Exchange Commission says it is collaborating with the central bank to develop a regulatory system for cryptos and digital properties.

The director-general of Nigeria’s Securities and Exchange Commission, Lamido Yuguda, has stated that the central bank’s crypto ban has triggered major market disturbances.

According to a report by The Guardian, the SEC director-general made this assertion known during a press conference organized after the meeting of the Capital Market Committee on Thursday.

The Central Bank of Nigeria banned commercial banks from servicing cryptocurrency exchanges in February, as previously noted by Cointelegraph.

According to Yuguda, the Commission has been forced to put its proposed cryptocurrency regulatory system, which was announced in September 2020, on hold.

The SEC director-general also stated that the Commission’s crypto regulatory plans will be suspended before exchanges can open bank accounts in the region.

As part of his speech, the SEC chairman said that the Commission was collaborating with the CBN to develop an optimal regulatory framework for cryptocurrencies in the region. Despite the crypto ban, the SEC, according to Yuguda, is continuing to promote the development of fintech in Nigeria.

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Following the CBN crypto moratorium, cryptocurrency purchases and sales are only available via peer-to-peer networks, resulting in huge premiums on virtual currency rates. In March, the central bank governor stated that the CBN was not opposed to cryptocurrency trading in the region, but that such transactions could not take place through commercial banks.

Lumo, a crypto trading website, previously said in response to the CBN ban that “blanket bans push people underground,” adding:

“Pushing people underground also makes it easier for scammers to exploit Nigerians, and we are already seeing Bitcoin trade at huge premiums in the country as a result of the ban. Other companies have made the choice to find workarounds that are less visible for regulators – for example, Peer-2-Peer (P2P) trading. Our view is that P2P trading would go against the spirit of the CBN’s directive.”

Meanwhile, Nigeria’s Vice President, Yemi Osinbajo, has recently urged authorities to take a more complex approach to crypto and blockchain regulation. Cryptocurrency, according to the vice president, will threaten conventional finance in the coming years.

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