Nigerian Agencies Told to Stop "Demonizing" Crypto Industry Players
Nigerian public and law enforcement agencies have been urged to “stop the demonization”of the blockchain and cryptocurrency industry. According to an association that advocates for the risk-based regulation of the crypto industry, financial institutions should not use a Nigerian central bank directive as basis for denying service to industry players. Risk-Based Regulation of Crypto Activities
A blockchain and crypto industry association has told Nigerian public and law enforcement agencies to stop demonizing and discriminating against blockchain and crypto entities. In its latest press release, the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN) argues that Nigeria urgently needs risk-based regulation for cryptocurrency activities as well as capacity building.
In a press release, SIBAN reiterates its strong belief that a February 5, 2021 directive from the Central Bank of Nigeria (CBN) did not ban cryptocurrencies in Nigeria. Yet, despite there being no law that provides for the arrest or persecution of crypto entities, the association’s statement said industry players are being targeted.
“From time to time, instances of undue arrest and detention, bank-account blocking and closures, discrimination, extortion, harassment, intimidation, seizures, and queries, are experienced by persons or entities involved in any blockchain or cryptocurrency activity in Nigeria, particularly since the CBN cryptocurrency directive of 2021,” the statement said.
Besides asking security agencies to recognize the blockchain and cryptocurrencies, SIBAN implored banks and other financial institutions to “appreciate the difference between blockchain technology and cryptocurrency.” The advocacy group said in instances where cryptocurrency is not involved, banks and other financial institutions should not use the CBN directive to justify denying service.
Capacity Building Recommended
SIBAN also opined that if agencies insisted on treating the blockchain just like they treat cryptocurrencies, such a stance would impact the entire banking system. The statement, warning of repercussions if such a move were to be taken, added: If treated as the same, the CBN’s very own blockchain-powered eNaira and any other blockchain-powered product or service in the country would be affected in Nigeria’s banking and financial system as well. This, of course, is not the intention of the CBN.
To help Nigerian agencies stop treating or likening the blockchain to cryptocurrencies, the advocacy group recommended “capacity building in blockchain and cryptocurrency, particularly AML-CFT for virtual assets, to banks and other financial institutions.”
Meanwhile, SIBAN, which describes itself as a pro-innovation and pro-regulation association, said while it encourages its members to “adhere to the rule of law” it will nevertheless “will explore administrative and legal options to seek redress” in instances where their rights are violated. On the other hand, the statement suggested that the association is ready to collaborate with regulators if ever such a request is made. Tags in this story Blockchain, CBN crypto, Cryptocurrencies, nigeria cryptocurrency, rule of law, Stakeholders in Blockchain Technology Association of Nigeria (SIBAN), virtual assets
What are your thoughts on this story? Tell us what you think in the comments section below. Terence Zimwara
Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route. Three African Countries Plan to Adopt Cryptocurrency and Blockchain Solutions EMERGING MARKETS | 4 days ago Crypto and Blockchain Firms Constitute 16% of UAE Free Zone"s Record Q1 Company Registrations EMERGING MARKETS | 4 days ago
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleRepublic of Ireland to Prohibit Political Cryptocurrency Donations Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItNFT Sales Volume Saw a Small Uptick This Week — Moonbirds, Mutant Apes Take Top Sales
Non-fungible token (NFT) sales saw a small uptick over the last week as $658.4 million in NFT sales were recorded, up 3.35% in seven days. Out of 15 blockchains, Polygon-based NFT sales saw the largest increase in volume, jumping 106.68% ... read more.Fidelity Investments Launches Crypto, Metaverse ETFs — Says "We Continue to See Demand" Fed"s Bullard Wants to Raise Bank Rate to 3.5% by Year"s End, Hints at 75 Basis Point Rate Hike FBI Issues Alert Concerning Malicious State-Sponsored North Korean Hackers Targeting Crypto Firms Economist Predicts the Fed"s Response to Inflation Will Push Crypto Higher