Local advocacy group reminds law enforcement agencies, public institutions, banks and other firms about the legality of cryptocurrencies and their differences from blockchain technology.
Nigerian Blockchain advocacy group SIBAN (Stakeholders in blockchain Technology Association of Nigeria) has issued a press release highlighting the difference between cryptocurrencies and the blockchain. The statement also reminded the public that all related activities within the sector remain legal in Nigeria. Hence, public and law enforcement agencies should stop their “demonization and discrimination” towards the industry.
SIBAN Calls For RIskBased Regulation For Crypto Activities While Recommending Capacity Building
SIBAN contends that a risk-based regulation of cryptocurrency activities and capacity building are critical in Nigeria. The organisation reiterated that if regulators insist on treating blockchain the same way they handle cryptocurrencies, it will influence the entire financial sector.
Furthermore, SIBAN holds a firm view that the Central Bank of Nigeria (CBN) did not ban cryptocurrencies in Nigeria. Instead, its February 5, 2021, directive only restricts cryptocurrency transactions within the banking and financial sector. It revealed further that the validity of that directive is being questioned in the court of law since it isn’t an established law in Nigeria.
Although no law allows for the arrest or prosecution of crypto organizations, the group claims that industry players are being targeted. They, therefore, called on public institutions and law enforcement agencies to stop the victimisation, arrest and intimidation of individuals involved in blockchain activities.
Finally, SIBAN implored both the public and private sectors to embrace the rule of law and innovation in the space. It further promised that entities associated with it would continue to comply with anti-money laundry rules and global best practices.
The press release comes as a sequel to an announcement made in February pointing to the same issues.
Meanwhile, SIBAN bills itself as a pro-innovation and pro-regulation organisation. It is an association of blockchain-industry players adopting self-regulation towards promoting a bigger, friendlier, and safer blockchain industry in Nigeria. Founded in 2018, the organisation is a member of several international regulatory associations, including the Fintech Alliance Coordinating Team (FACT). It is also a key stakeholder recognised in the National Blockchain Adoption Strategy by the Federal Ministry of Communications & the Digital Economy.
SIBAN Addresses Hostility Against The Crypto Industry Which Seems To Have Exceeded The CBN’s Scope
SIBAN’s statement may be in response to the growing anti-crypto stance that seems to have gone beyond the scope of the CBN. There have been reports of account closures and fines meted out to Banks caught handling crypto transactions unknown to them.
Also, it has been suggested that the CBN has planted agents on peer-to-peer platforms to report individuals transacting in crypto. This is after Nigerian crypto investors used the P2P exchanges as an alternative to carry out transactions following the CBN ban. A famous Twitter influencer, Danny Walter, made this suggestion
Furthermore, there have other reports across social media of law enforcement harassment and extortion of individuals having crypto-related apps on their phones. This is reminiscent of the events which led to the #ENDSARS protests against police brutality in 2020. All these, according to SIBAN, go beyond the scope of the CBN’s directive, hence their timely reminder.
With Nigeria leading Africa in the adoption of cryptocurrencies, the interest of investors must be protected at all costs. SIBAN seems to be carrying out its duty while presenting a voice of reasoning to the government. Nigeria’s government may need to call for dialogue with SIBAN and other interested parties to forge a pathway for further blockchain adoption
Do you think the CBN’s directive is hampering blockchain growth and adoption in Nigeria? Let us know your thoughts in the comments below.
Kingsley is a fintech writer with over 4 years of experience covering blockchain and cryptocurrency news. Alo first discovered Bitcoin in 2016 and has been passionate about it ever since, particularly the various ways blockchain can help Africa and the world at large. He desires to give the crypto space a more geographically balanced narrative and serve as a bridge between Africa and the rest of the world. His articles have been featured in Cointelegraph, Beincrypto, and Forkast.news, among others.
