The Senate has mandated its Committees on Banking, Insurance and Other Financial Institutions, ICT and Cybercrimes and Capital Market to invite the Governor of the Central Bank of Nigeria, Godwin Emefiele to brief it on the recent ban on cryptocurrency in the country.
The Senate also invited the Director General of the Securities and Exchange Commission (SEC), Lamido Yuguda, to meet with its joint committee on the issue.
It defined that the facts that would emanate from the briefings from the two regulatory bodies could assist the Senate to “decide the opportunities and threats of the cryptocurrency on the nation’s financial system and safety.”
This decision of the higher chamber became sequel to its attention of a motion titled: “CBN’s selection to prevent Financial Institutions from transacting in Crypto currencies and matters bobbing up therefrom” at plenary.
The motion turned into sponsored by means of Senator Istifanus Dung Gyang, (Plateau North) and Senator Adetokumbo Mukhail Abiru, (Lagos East).
Senator Gyang who offered the motion entreated his colleagues to note that the CBN has issued a directive preventing all monetary institutions from transacting in cryptocurrencies.
He said that the directive of the apex financial institution was a observe as much as its in advance directives in January, 2017 and February 2018 which “forbade banks not to use, preserve, alternate and/or transact in cryptocurrencies.”
He further informed the Senate that the choice of the CBN become stated to have been predicated at the want to protect the Nigerian financial system from the damaging outcomes of the cryptocurrency regime which might be “unregulated digital or virtual currencies which are issued by means of anonymous entities and secured through cryptography.”
He determined that cryptography is a “method of encrypting and hiding codes that prevent oversight, duty and law upon which the CBN says its use in Nigeria violates and contravenes existing law as only the CBN is allowed by law to problem prison soft.
He introduced: “Concerned that Crypto forex by using nature is anchored on anonymity, obscurity and concealment of its buyers and actors making it tough, if not not possible, to trace, tune and find those which could deploy it for ignoble and unlawful usage which include cash laundering, terrorism financing, drug purchase, cybercrime, and many others.
“Aware that the action and directive of the CBN has attracted sharp reactions from Nigerians and has grow to be a topical concern of countrywide speak; and
“Realized that Crypto forex is each an possibility and a danger, for this reason the Senate has a obligation to make sure that the country and residents do not miss out at the possibilities that Crypto foreign money offers and inside the identical vein, mitigate and prevent in all likelihood consequential results on the state’s economic system and protection.”
Senators in their contribution supported the movement.
Senators accredited the only prayer of the motion when it turned into put to voice vote with the aid of Senate President Ahmad Lawan.
The joint committee turned into given weeks to report returned to plenary by means of the Senate President.
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