Nigerian Agencies Told to Stop Demonizing Crypto Industry Players – The government and law enforcement authorities in Nigeria have been advised to stop demonizing the cryptocurrency and blockchain industries. Financial institutions should not refuse service to sector participants based on a Nigerian central bank instruction, according to an organization that pushes for risk-based regulation of the crypto business.
The Stakeholders in Blockchain Technology Association of Nigeria (SIBAN) argues in a recent news release that risk-based regulation for cryptocurrency operations, as well as capacity building, is urgently needed in Nigeria.
SIBAN reiterates its firm view that the Central Bank of Nigeria did not prohibit cryptocurrencies in Nigeria in a press release dated February 5, 2021. Despite the fact that there is no law that allows for the arrest or prosecution of crypto organizations, the group claims that industry players are being pursued in their statement.
Also Read: Argentinian Securities Regulator Launches Innovation Hub to Discuss Regulated Crypto Investments
“Individuals or entities involved in any blockchain or cryptocurrency activity in Nigeria have experienced instances of arbitrary arrest and detention, bank account closures, harassment, discrimination, extortion, seizures, intimidation, and queries from time to time, particularly since the CBN cryptocurrency directive of 2021,” the statement stated.
SIBAN urged banks and other financial institutions to “appreciate the distinction between blockchain technology and cryptocurrency,” in addition to requesting that security agencies distinguish blockchain and cryptocurrencies. Banks and other financial institutions should not use the CBN guideline to justify denying service in cases where cryptocurrency is not involved, according to the advocacy organization.
SIBAN also believes that if regulators insist on treating blockchain the same way they handle cryptocurrencies, it will have an influence on the entire financial sector. The message went on to say that if such a move were to be made, there would be consequences.
The advocacy organization advocated “capacity building in blockchain and cryptocurrency, notably AML-CFT for virtual assets, to banks and other financial institutions” to help Nigerian officials cease treating the blockchain like cryptocurrencies.
Also Read: Delivery App Rappi Launches Pilot Project to Accept Crypto Payments in Mexico
SIBAN, which bills itself as a pro-regulation and pro-innovation organization, said that while it urges its members to adhere to the rule of law, it will explore administrative and legal measures to seek redress if their rights are abused. The statement, on the other hand, implied that the group is prepared to work with regulators if such a request is made.