A Nigerian blockchain industry leader has described the recent approval of two crypto exchanges by the securities regulator as a positive step that improves the image of Nigeria’s crypto space. The leader believes clear regulations will attract foreign investors and benefit Nigerian entrepreneurs. He also urged Nigeria to follow the rule of law regarding the detained Binance employee.
Nigerian Blockchain Leader: Approval of 2 Crypto Exchanges Brings Much-Needed Regulatory Clarity
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SEC Move Brings Regulatory Clarity to the Nigerian Crypto Market
Nigeria’s recent approval of two digital asset exchanges is a welcome development for the industry, according to Obinna Iwuno, leader of the country’s blockchain advocacy group. Iwuno, president of the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN), believes the move will help counter the negative perception surrounding the Nigerian crypto space, which intensified following the detention of Binance executives earlier this year.
As reported by Bitcoin.com News, Nigerian authorities have cracked down on crypto exchanges, accusing them of contributing to the depreciation of the local currency. This crackdown prompted some global exchanges to scale back or exit the Nigerian market in the past six months. Binance, a particular target of Nigerian officials, faces money laundering charges. One of its employees, Tigran Gambaryan, has been detained over the matter.
However, Nigeria’s treatment of the Binance employee, coupled with allegations of attempted extortion against the exchange, tarnished the country’s image, according to a June statement from former SIBAN leader Senator Ihenyen. Binance CEO Richard Teng echoed this sentiment, calling Nigeria’s actions a dangerous precedent.
SIBAN Leader Calls for Swift Resolution of Tigran Gambaryan’s Case
Iwuno meanwhile views the decision by the Securities and Exchange Commission (SEC) under Director General Lamido Yuguda (often referred to as “Agama”) as a positive step. He emphasizes that it provides much-needed regulatory clarity. Having a clear licensing regime, in turn, enables foreign investors seeking entry into the Nigerian crypto market to legally establish operations in the West African nation.
In a statement shared with Bitcoin.com News, Iwuno insisted that the lack of clear regulations had also negatively impacted Nigerian entrepreneurs. He explained that the SEC’s approval and processing of other license applications were likely to address this issue.
“Startups in Nigeria have faced challenges due to the funding landscape. Many foreign investors require companies to register in jurisdictions outside Nigeria with clear regulations to receive funding. This has led Nigerian entrepreneurs to operate their businesses as foreign entities, resulting in a loss of value for the country,” Iwuno lamented.
The SIBAN president asserted that Nigeria, as a major player in Africa’s cryptocurrency trading, should have been the first to regulate and issue licenses. Regarding Gambaryan’s incarceration, the SIBAN leader urged Nigerian officials to uphold the rule of law and adhere to global standards of practice and human rights.
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