The governor of the Central Bank of Nigeria, Yemi Cardoso, has made it clear in the context of the recent clash between the federal government and Binance, that the task of regulating cryptocurrency trading platforms is not part of the role of the CBN.
Cardoso made this statement during the press briefing that followed the 294th session of the Monetary Policy Committee (MPC) in Abuja on Tuesday.
The federal government has recently been at odds with cryptocurrency platforms, leveling accusations against them for currency manipulation, speculative activities, and alleged illegal money laundering activities
The office of the National Security Adviser (ONSA) also detained two Binance executives amid this controversy.
However, Nairametrics reported that one of the executives, Nadeem Anjarwalla, was confirmed to have fled the custody where he was detained.
In response to this development, the CBN chief stated that it is not the role of the financial institution to regulate or prosecute actors in the cryptocurrency sector.
According to him, the regulation of cryptocurrency platforms is the duty of the Nigeria Securities and Exchange Commission (SEC), and the national adviser’s office is responsible for prosecuting individuals who break the law in this context.
- “A month ago, we actually did have collaboration with law enforcement agencies, EFCC, the SEC and other regulatory bodies as well. And I think what came out of that, quite frankly, is work in progress, but also very positive.
- “We’ve been sharing information together. However, in this particular case the responsibility for regulating cryptocurrency is not our role. It is not ours. It is strictly that of the Security and Exchange Commission (SEC). That is not our responsibility.
- “Of course, the issue of people being held in custody, again strictly speaking is the Office of the National Security Adviser. That is not within the purview of the Central Bank. Unfortunately, there is nothing to report to you or tell you. We just want to clarify that is really the relationship the Central Bank has on this matter,” Cardoso said.
What you should know
Earlier, Nairametrics reported that the Office of the National Security Adviser (ONSA) confirmed the escape of a top executive of the cryptocurrency trading platform, Binance, Nadeem Anjarwalla, from custody.
In February, the federal government reportedly detained two top executives of the popular cryptocurrency trading platform, Binance, over alleged manipulations in foreign exchange trading and speculative activities.
The executives visited Nigeria in response to the country’s recent crackdown on various cryptocurrency trading platforms.
During their stay, they were apprehended by the Office of the National Security Adviser, and their passports were confiscated.
The federal government also requested that the cryptocurrency platform names its top 100 users in the country, as well as all transaction history for the past six months.
