Cbn Cryptocurrency Ban Lift: Can You Transact In Crypto?

Nigerian crypto enthusiasts rejoiced as the Central Bank of Nigeria (CBN) surprised them with an early Christmas present – lifting its two-year ban on cryptocurrency transactions.

While some might claim cryptocurrency is now legal, it's important to clarify: it was never outlawed.

The CBN previously restricted bank accounts facilitating crypto transactions, a restriction they have now reversed.

This new framework allows for transparent crypto activities within the banking system.

Cryptocurrency businesses must register with the Securities and Exchange Commission (SEC) and implement proper anti-money laundering measures.

For everyday Nigerians, this means freely buying and selling crypto for personal use without fearing bank account closures.

For aspiring crypto businesses, navigating this nuanced landscape is crucial. We recommend seeking legal counsel from specialists familiar with Nigerian crypto and fintech regulations.

BAT Hit with $110 Million Fine by FCCPC (No, it's not Bola Ahmed Tinubu)

The Federal Competition and Consumer Protection Commission (FCCPC) delivered a hefty blow to British American Tobacco (BAT) – a $110 million fine. Don't confuse them with Bola Ahmed Tinubu (BAT, not PBAT)!

FCCPC: Championing Consumer Rights

Established in 2019 by the Federal Competition and Consumer Protection Act (FCCPA), the FCCPC replaced the Consumer Protection Council with broader investigative and enforcement powers.

They stand as Nigeria's consumer rights champions – explore their mandate here.

Unveiling the BAT Investigation:

The FCCPC initiated an investigation into BAT and its affiliates in August 2020, suspecting breaches of the FCCPA, National Tobacco Control Act, and other legal instruments.

Unfortunately, the FCCPC remains mum on the specific allegations, offering only this timeline:

• August 28, 2020: Investigation begins.
• January 25, 2021: FCCPC executes a search and seizure warrant.
• December 2022: Investigation concludes, and Consent Order agreed upon.
• 2023: BAT pays the penalty as per the Consent Order.

Consent Order Explained:

Under Section 149 of the FCCPA, the FCCPC and a company under investigation can agree on a settlement order. The FCCPC can register this order in court, securing its enforceability.

The BAT Consent Order:

1. $110 Million Fine: BAT must pay a hefty financial penalty.
2. Compliance Monitoring: BAT and its affiliates will be subject to FCCPC oversight for 24 months.
3. Public Health Advocacy: BAT must undertake mandatory public health and tobacco control initiatives.
4. Withdrawn Charges: The FCCPC drops pending criminal charges against BAT and an employee.

Our Perspective:

Regulatory action is generally positive, demonstrating the FCCPC's commitment to safeguarding citizens.

Moreover, the Consent Order suggests BAT acknowledged wrongdoing, explaining their willingness to pay.

However, the secretive nature of the investigation and announcement raises concerns. While the FCCPC release offers little clarity on BAT's actions, the US Department of Justice's statement concerning a similar BAT fine is refreshingly transparent.

Comparing ourselves to countries like the US, with their advanced regulatory systems, can be uncomfortable but valuable.

Examining others' best practices can inspire improvements in our system.

Perhaps the lack of information is intentional, with BAT somehow securing a secrecy clause in the Consent Order. If so, the FCCPC should have openly acknowledged this.