Nigerian Senate calls on central bank to explain restrictions on Bitcoin exchanges

The upper chamber of Nigeria’s parliament has summoned Central Bank Governor Godwin Emefiele for a briefing on the opportunities and risks of cryptocurrencies. The move followed new regulator requirements for financial institutions.

Senate resolves to:

Mandate the Committees on Banking, Insurance and other Financial Institutions, ICT and Cybercrimes, and Capital Market to invite the CBN Governor for briefing on…

— The Nigerian Senate (@NGRSenate) February 11, 2021

On 5 February, the forbade commercial banks from providing services to cryptocurrency exchanges and to companies dealing with digital assets. The regulator explained that this was necessary to protect the local economy from risks.

During the plenary, senators acknowledged that Nigeria cannot shield itself from cryptocurrencies. They argued the sector requires regulation, not restrictions.

“What we can do is ensure bad actors must not use it. This motion is most important to us. The time has come for us to harmonize all the issues concerning cryptocurrency.”

— The Nigerian Senate (@NGRSenate) February 11, 2021

“What we can do is to ensure that bad actors cannot use them. This motive is the most important to us,” said Senator Biodun Olujimi.

Earlier in autumn 2020, Nigeria’s Ministry of Finance and the Securities and Exchange Commission began developing a regulatory framework for cryptocurrencies.

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