Stakeholders in the Nigerian Blockchain advocacy group, the Blockchain Technology Association of Nigeria (SIBAN), have said that crypto is legitimate and should be regulated. The group says any such rule should encourage innovation on the one hand, but discourage bad actors on the other.
Equal access to banking and financial services
Stakeholders in the Nigerian Blockchain advocacy group, the Blockchain Technology Association of Nigeria (SIBAN), have urged the Central Bank of Nigeria (CBN) to reconsider its decision to block crypto entities from the banking ecosystem. The group insisted that “cryptocurrency is legit” and later launched a Twitter campaign to regulate cryptocurrencies.
In its statement issued just a year after the CBN directive took effect, the advocacy group called on various bodies and government ministries to play their part in helping cryptocurrencies become a recognized and regulated asset class. The statement also discussed the potential benefits of regulating cryptocurrencies.
“Today we advocate equal access to banking and financial services by Virtual Asset Service Providers (VASPs) without discrimination in accordance with the Nigerian Constitution, applicable laws and in particular the Nigerian Laws on Anti-Money Laundering and the Financing of Terrorism (AML/CFT). ) regulations. Among other benefits, this approach will aid investigations by our law enforcement agencies, including the Nigeria Police and the Economic and Financial Crimes Commission (EFCC),” SIBAN explained.
Joint regulation of crypto assets
Nevertheless, in a move that may not please CBN, the stakeholder group suggested that the Securities and Exchange Commission (SEC) of Nigeria, as well as other relevant regulators, “should take any measures to regulate cryptocurrencies as part of their statutory duties”. The effort should also be included in the laws of the Federal Republic of Nigeria.
Before February 5, 2021, both the SEC and the central bank appeared to be overseeing the crypto industry, with the former issuing a circular designating crypto assets as securities in September 2020. However, following the central bank’s move, the SEC said it has suspended its circular and is in talks with CBN.
Meanwhile this statement outlines what SIBAN envisions being a regulated cryptocurrency industry will entail. This indicates:
Regulators should adopt a regulatory approach that encourages innovation while discouraging bad actors, not all actors. Often concerned about the risks associated with crypto, the role of regulation is not to make the risks disappear but to manage them in accordance with global best practices and in collaboration with all relevant stakeholders, including industry players.
The statement added that SIBAN “also cares about consumer protection, investment security and a secure and sound financial system.” However, the group, which has volunteered to help, said “no regulator in the world can do this alone.”
Do you agree that regulating cryptocurrencies is beneficial to Nigeria? Tell us what you think in the comment section below.
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