Calls for Regulation of the Cryptocurrency Industry by a Nigerian Blockchain Advocacy Group

Advocacy organisation SIBAN in Nigeria has stated that crypto is legal and should be subjected to proper regulation. On the one hand, the organisation says, any law should foster innovation while discouraging negative actors on the other.

Banking and Financial Services should be available to all people.

The Stakeholders in Blockchain Technology Association of Nigeria (SIBAN) has urged the Central Bank of Nigeria (CBN) to rethink its decision to prohibit crypto businesses from the banking environment. Because they believe that “crypto is legit,” they’ve launched an online campaign on Twitter to have the currency regulated.

The advocacy group issued a statement a year after the CBN’s instruction came into effect, urging various government agencies and authorities to help ensure that cryptocurrencies are recognised and regulated as an asset class in the future. According to this remark, there are several advantages to deregulating cryptocurrencies.

Virtual asset service providers (VASPs) should have equal access to banking and financial services without discrimination in accordance with the Nigerian Constitution, applicable laws, and particularly Nigerian law on anti-money laundering and combating the financing of terrorism (AML/CFT) regulations. This method would help our law enforcement agencies, notably the Nigeria Police and the Economic and Financial Crimes Commission (EFCC), among others,” SIBAN added.

Mutual Control of Cryptocurrency Assets

Nigeria’s Securities and Exchange Commission (SEC) as well as other relevant authorities should be included in any effort to regulate cryptocurrencies as per “their legislative duties under the laws of the Federal Republic of Nigeria.”

Both the SEC and the central bank seemed to be monitoring the crypto industry before February 5, 2021. The SEC had published a circular in September 2020 designating crypto assets as securities. The SEC, on the other hand, announced that it had paused its circular and was in negotiations with the CBN following the central bank’s decision.

SIBAN’s statement, on the other hand, outlines the benefits it expects from a regulated cryptocurrency market. This is what it says:

“Regulators should adopt a regulatory approach that encourages innovation while discouraging bad actors, not all actors. While concerned about the risks often associated with crypto, the role of regulation is not to make risks disappear but manage them in accordance with global best practices and in collaboration with all concerned stakeholders, including industry players.”

As part of its mission, SIBAN stresses the importance of protecting consumers as well as ensuring the stability of financial markets. However, the group, which has offered to assist, says “no regulator in the world can accomplish this alone.” ‘

Leave a Comment

Your email address will not be published. Required fields are marked *


Recent Posts

Follow Us