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Local stakeholders in Nigeria’s cryptocurrency sector advocate for a regulatory approach focused on compliance rather than criminalization. Obinna Iwuno, former president of the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN), has become a prominent voice for a more balanced and constructive regulatory framework.
Iwuno argues that Nigeria's current regulatory stance, which has led to notable legal disputes and the detention of {cryptocurrency} executives, is counterproductive and could damage the country’s international reputation. He advocates for a regulatory environment that emphasizes fines and operational restrictions over severe punitive measures, unless there is a clear legal violation or threat to national security.
“Nigeria is a significant player in the global cryptocurrency landscape and cannot afford to overlook the importance of effective regulation,” Iwuno stated. He highlighted the potential benefits of a well-regulated cryptocurrency ecosystem compared to the drawbacks of a more punitive approach.
This perspective is particularly relevant in light of Nigeria’s ongoing legal issues with Binance, a leading global cryptocurrency exchange. Binance faces accusations of money laundering and tax evasion in Nigeria, which have led to the arrest and continued detention of Tigran Gambaryan, one of its executives. The aggressive regulatory measures have raised concerns among industry stakeholders who worry about the potential stifling of the sector's growth and negative impacts on Nigeria’s global standing.
In contrast, members of the local crypto community are looking to India’s recent resolution of its regulatory challenges with Binance as a potential model. The Indian Financial Intelligence Unit (FIU) imposed a financial penalty on Binance and required the exchange to register as a reporting entity, which allowed Binance to resume operations while complying with local regulations. This approach is seen as a balanced strategy that combines penalties with constructive engagement.
Local policy and data analyst Obinna Uzoije supports Iwuno’s view, emphasizing the differences between India’s cooperative regulatory approach and Nigeria’s more punitive tactics. Uzoije argues that India’s method, which respects individual rights while fostering oversight and innovation, avoids the negative impacts of punitive actions and helps maintain a conducive environment for business and investor confidence.
