Nigeria’s Securities and Exchange Commission has withdrawn its previously announced plan to implement digital currency regulations, according to a recent Bloomberg article,

Nigeria’s Securities and Exchange Commission suspends plans to regulate cryptocurrencies, until those dealing in them can open domestic bank accounts https://t.co/C5j1Jgu8o2

— Bloomberg Markets (@markets) February 12, 2021

Nigeria suspends regulation of crypto assets

In September 2020, the Nigerian government announced that it would introduce regulations on cryptocurrency transactions to protect investors and provide them with market integrity and transparency.

The country’s supervisory authority had previously stated in 2018 that cryptocurrency is not a legal payment method and that all users (especially investors) are threatened by crypto.

However, the local Securities and Exchange Commission (SEC) recently urged and directed financial institutions (especially banks) to ban the accounts of companies and individuals involved in digital asset transactions.

However, the first aspect of this aspect changed quickly. According to Nigerian regulators, the plan has been postponed until crypto users operate bank accounts in the local banking system.

According to a series of tweets the Nigerian Senate released on Thursday, Senator Sani Moussa said the government cannot currently enforce crypto regulations because the technology is so powerful.

He added that Bitcoin turned the local fiat currency into something of little value.

“Cryptocurrency has become a worldwide transaction of which you cannot even identify who owns what. The technology is so strong that I don’t see the kind of regulation that we can do. Bitcoin has made our currency almost useless or valueless." – Senator Sani Musa

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

Binance withdrawal still active in Nigeria

According to CoinDesk, when the Securities and Exchange Commission of Nigeria ordered banks to close the accounts of cryptocurrency investors and companies a week ago, trading giant Binance reacted to suspend deposits in Nigeria until further notice.The company warned that withdrawals are still valid but may take longer.

Jack Dorsey supports African Bitcoin developers with 500 BTC

At the same time, Twitter CEO and Square co-founder Jack Dorsey and the American rapper Jay-Z donated 500 Bitcoins to the newly established Bitcoin Development Trust Fund for African and Indian teams (approx. 23.6 million US dollars).

The fund aims to make Bitcoin the currency of the internet. Because of this, the organization does not receive guidance from Dorsey or Jay-Z.