Nigerian Agencies Urged To Stop Cryptocurrency 'Demonization'
Risk-Based Cryptocurrency Activity Regulations
According to a trade group representing the industry, Nigerian law enforcement officials and the general public have been encouraged to stop demonizing and discriminating against crypto and blockchain firms. Stakeholders in the Blockchain Technology Association of Nigeria (SIBAN) contend that crypto operations in Nigeria require risk-based regulation and capacity training.
SIBAN published a press statement stating that it believes the Central Bank of Nigeria's instruction announced on February 5, 2021, did not ban cryptocurrencies in Nigeria. Even though no law allows for the arrest or prosecution of crypto organizations, the group claims that industry players are being targeted in their statements.
"Individuals or entities involved in any blockchain or cryptocurrency exercise in Nigeria, particularly since the CBN cryptocurrency directive of 2021, have experienced undue arrest and detention, bank-account blocking and closures, discrimination, extortion, harassment, intimidation, seizures, and queries," the assertion stated.
SIBAN urged banks and other financial institutions to "recognize the distinction between blockchain technology and cryptocurrency," requesting security companies to recognize the blockchain and cryptocurrencies. According to the advocacy organization, banks and other financial institutions should not use the CBN guideline to justify rejecting service in circumstances where bitcoin isn't involved.
Meanwhile, SIBAN, which claims itself as a pro-innovation and pro-regulation organization, stated that while it encourages its members to "adhere to the rule of law," it will "find administrative and legal options to seek redress" if their rights are abused. On the other hand, the assertion indicated that the organization is willing to work with regulators if such a request is made.