The group advocating for cryptocurrency recognition and regulation, the Stakeholders in Blockchain Association of Nigeria (SiBAN), has advised the federal government on its ongoing clampdown on alleged unauthorized Nigerian crypto dealers.
The President of the Association, Obinna Iwuno, shared his views with Nairametrics in an exclusive interview.
His response follows a Nairametrics report stating that on October 14, 2024, two Nigerian crypto-dealing companies refunded N160,000,000 to the federal government after being indicted for allegedly conducting business as financial institutions without a valid banking license, including USDT to Naira transactions.
Need for Crypto Regulatory Clarity
When asked about his views regarding the latest restitution made by these Nigerian companies, he noted that the key issue with this development “is the lack of regulatory clarity.”
He explained that if there had been a regulatory framework detailing the rights and wrongs of crypto dealings in Nigeria, it would have addressed all associated issues within the confines of regulations and legal application.
“There would not be any case of operating unlicensed or of being unauthorized to do certain things.
“The truth is that blockchain technology is a novel innovation, and we cannot escape it,” he stressed.
He emphasized that it is crucial for Nigerian stakeholders to start understanding crypto transactions and blockchain early, and to establish frameworks that will help the country fully maximize the potentials inherent in blockchain.
He appreciated the Securities and Exchange Commission (SEC) for commencing the issuance of provisional licenses to some Nigerian companies in digital assets.
“We are expecting to see more of that,” he added.
He stressed that once the regulation currently being worked on is finalized, it will help legitimize the operations of some crypto players.
“What is the basis for ascertaining right and wrong? Proper definitions and regulatory guidelines for crypto operations are what the sector needs now.”
Iwuno disclosed that SiBAN is working with regulators on guidelines, rules, and codes of conduct for special asset service providers and crypto traders, focusing on investor protection, consumer protection, and national security, among other issues.
“As much as crypto trading has benefits, it also has disadvantages. There are other uses it can have that go beyond the benefits we are currently experiencing.”
“We need to consider those aspects and ensure that we maximize the benefits when they come,” he said.
He stated that the detailed guidelines stakeholders are expecting to be approved should include disciplinary measures so that when someone defaults, they will face those consequences.
He advised the government to avoid a situation where there is no proper regulatory definition of the blockchain industry, noting that it would be used as leverage to discipline supposed defaulters.
For Nigeria, he said the future of blockchain and crypto transactions is significant, requiring the government to urgently finalize its regulation.
Back Story
Last week, the Federal High Court in Abuja was notified about a plea bargain agreement that Paparaxy Global Ventures Limited and Lemskin Technologies Limited entered into with the Economic and Financial Crimes Commission (EFCC).
- Details of the agreement, exclusively seen by Nairametrics, indicate that the court should formally order the forfeiture of the N160 million refund to the federal government’s account at the next sitting, following the admission of contravention by the owners of the companies.
- This development follows intelligence from the National Security Adviser, which alleged money laundering, foreign exchange contraventions, and terrorism financing activities involving certain cryptocurrency exchange platforms.
Nairametrics previously reported that Nigeria’s anti-graft agency, the EFCC, on September 4, 2024, secured an order from the Federal High Court to freeze N548.6 million in bank accounts belonging to suspected crypto users on platforms like ByBit, KuCoin, and others, based on their alleged role in Naira fluctuations.
What You Should Know
SiBAN, founded in 2018, is the only professional body comprising stakeholders in the cryptocurrency space in Nigeria.
The association has been at the forefront of calls for the regulation of crypto in Nigeria to provide recognition for legitimate businesses in the space.
Through their advocacy, the government is beginning to pay attention to the crypto space, culminating in the recent approval-in-principle granted to two crypto exchanges, Quidax and Busha, by the Securities and Exchange Commission (SEC).
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