The Central Bank of Nigeria (CBN) and Securities and Exchange Commission (SEC) has been sued to court by a civil society organisation, the Digital Rights Lawyers Initiative, over the recent action of the apex bank that Deposit Money Banks should desist from transacting in and with entities dealing in cryptocurrencies.
The digital rights Lawyers in a Suit filed on Monday, February 8, 2021 at the Federal High Court in Lagos, said the CBN, which is the first defendant, lacked the power to restrict financial institutions from dealing in cryptocurrency transactions. They argued that the second defendant, SEC, had in a circular dated September 14, 2020, declared cryptocurrencies as legal digital assets “protected under section 44 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended)”. The lawyers, therefore, asked the court to validate the Investments and Securities Act 2007, which made SEC the apex regulatory body of the Nigerian capital market. They also prayed the court to declare the CBN action as “ultra vires, unconstitutional, null and void”.
Read more details at Punch
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