Nigerian Crypto Industry Leaders Raise Alarm Over Regulatory Vacuum

Stakeholders in the Nigerian Blockchain Technology Association (SiBAN) attribute the rise of peer-to-peer (P2P) crypto trading to a lack of regulation. SiBAN President, Obinna Iwuno, emphasizes the need for regulation to prevent criminalization and promote industry growth. The absence of regulation has left the industry susceptible to allegations of economic sabotage and manipulation of foreign exchange rates. SiBAN calls for stakeholders to collaborate in changing the negative narrative surrounding crypto and demonstrate its potential for economic development under a regulated framework.

Nigeria's Crypto Industry Leaders Sound Alarm Over Lack of Regulation

Amidst growing concerns over the potential for a ban on peer-to-peer (P2P) cryptocurrency trading in Nigeria, the Nigerian chapter of the Blockchain Technology Association (SiBAN) has vehemently criticized the government's lack of regulatory oversight.

SiBAN President, Obinna Iwuno, emphatically stated that the absence of regulation has directly contributed to the proliferation of P2P crypto trading platforms in the country. He highlighted that had the government taken a proactive approach to regulating the industry, a significant portion of Nigerian crypto traders would have opted for regulated exchanges instead of the decentralized P2P platforms.

Iwuno expressed grave concern that the government's ongoing crackdown on crypto trading could escalate into criminalization if immediate action is not taken to educate policymakers about the potential benefits of the technology. He emphasized the imperative for industry stakeholders to collectively voice their concerns and dispel the false narrative that cryptocurrencies are fueling economic sabotage and manipulating foreign exchange rates.

"We, as an industry, urgently need regulation," said Iwuno. "Regulation would empower us far more than an unregulated sector. The reason P2P trading is facing scrutiny today is precisely because of the lack of regulation. If we had a properly regulated ecosystem, P2P platforms would not have experienced such a surge in popularity. Everyone would have conducted their transactions through regulated exchanges, and we wouldn't have this issue."

Iwuno stressed that the crypto industry is not complicit in the alleged economic sabotage and currency manipulation, and that the accusations against the industry are unfounded and damaging. He urged industry stakeholders to collaborate in presenting a unified message to the government, emphasizing the potential of blockchain technology to drive economic development and wealth creation.

"It is imperative that we take immediate steps to change the negative narrative surrounding our industry," said Iwuno. "The government's perception of the crypto industry is grossly distorted. We want to establish a constructive relationship with the government because when we operate within a regulated framework, we can harness the power of this technology for the betterment of the economy."

"If we fail to address these concerns decisively, the consequences could be severe. We don't want to wake up one morning to find that cryptocurrency trading has been criminalized and deemed illegal," warned Iwuno.

The concerns raised by SiBAN stem from the recent actions taken by the Nigerian government against cryptocurrency trading. The National Security Adviser (NSA) recently declared cryptocurrency trading a national security issue, prompting the Central Bank of Nigeria (CBN) to order four major fintech companies—Opay, Moniepoint, Paga, and Palmpay—to terminate the accounts of customers engaging in crypto transactions.

Subsequently, the Economic and Financial Crimes Commission (EFCC) obtained a court order to freeze over 1,146 bank accounts linked to individuals and businesses suspected of illicit foreign exchange dealings, many of whom were engaged in cryptocurrency-related activities.

These measures have sent shockwaves through the Nigerian crypto community, raising fears that a complete ban on crypto trading may be imminent. However, SiBAN remains resolute in its belief that constructive dialogue and regulatory clarity are the keys to unlocking the full potential of blockchain technology in Nigeria.

Conclusion

The Nigerian crypto industry stands at a crossroads. The government's crackdown on unregulated trading has cast a shadow over the future of the sector, but it has also created an opportunity for the industry to come together and advocate for a balanced, forward-looking regulatory framework.

The onus is now on SiBAN and other industry stakeholders to engage with policymakers, dispel misconceptions, and demonstrate the immense potential of blockchain technology to contribute to Nigeria's economic progress. Only through meaningful dialogue and collaborative effort can the industry chart a sustainable path forward, one that fosters innovation, protects consumers, and harnesses the transformative power of digital assets.