Lamido Yogoda, chief executive of Nigeria’s Securities and Exchange Commission, said the central bank’s ban on cryptocurrencies has caused major market turmoil.

According to The Guardian, the CEO of the Saudi Electricity Company made the announcement at a press conference held after the Capital Markets Committee meeting on Thursday.

As Cointelegraph previously reported, the Central Bank of Nigeria banned commercial banks from operating cryptocurrency exchanges in February.

According to Yogoda, the commission had to discontinue the planned structure of the cryptocurrency announced in September 2020.

The CEO of SEC also said that the suspension of plans for the cryptocurrency regulatory committee will remain in effect until exchanges can manage bank accounts in the country.

As part of his speech, the SEC Chairman said the commission is working with CBN to create an ideal system for regulating cryptocurrencies in the country. In addition to banning cryptocurrencies, Yogoda said, the Securities and Exchange Commission continues to make progress in supporting fintech growth in Nigeria.

After the ban on the CBN cryptocurrency, cryptocurrencies can only be bought and sold through peer-to-peer channels, causing cryptocurrency prices to skyrocket. In March, the central bank governor indicated that CBN does not object to cryptocurrency trading in the country, but that such transactions cannot be conducted through commercial banks.

In a previous statement released to Cointelegraph, cryptocurrency exchange platform Lumo responded to the CBN ban by saying that “carpet bans are pushing people to work underground,” adding:

“Pushing people to work underground is also making it easier for scammers to exploit Nigerians, and we are already seeing bitcoin trading at huge margins in the country as a result of the ban. Other companies have chosen to find less obvious solutions for regulators, such as peer-to-peer trading. We believe that P2P trading would be against the spirit of CBN directing. ”
Meanwhile, Nigerian Vice President Yemi Osinbajo has previously urged regulators to implement a detailed approach to regulating cryptocurrencies and blockchain. According to the vice president, the cryptocurrency will challenge the traditional economy in the coming years.