The SEC Move Brings Clarity of Regulations to the Nigerian Crypto Market. The Securities and Exchange Commission of Nigeria has given recent approval to two digital asset exchanges. Obinna Iwuno, who leads the Stakeholders in Blockchain Technology Association of Nigeria-SIBAN-led applause for the development, saying it would clean up the image of the cryptocurrency space of the country that had been tainted with a gray area as pertains to regulations and negative perceptions by citizens.
The SEC’s move, according to Iwuno, provides the much-needed clarity from a regulatory standpoint. This might help temper the growingly negative sentiment concerning the Nigerian crypto industry after this year’s detention of Binance executives. Clear regulations, according to Iwuno, will definitely open ways for more foreign investments into the Nigerian crypto market and create room for Nigerian entrepreneurs to thrive.
Challenges Faced by the Nigerian Crypto Industry
The industry in Nigeria has really had to face some very serious challenges, especially in the last months. This is because several reports have shown that the Nigerian government has cracked down on cryptocurrency exchanges over their perceived contribution to the depreciation of the local currency. This makes several global exchanges scale back or completely withdraw from the country’s market.
It’s none other than Binance, one of the largest cryptocurrency exchanges in the world, which the Nigerian government has bombarded with accusations of money laundering. If that’s not enough, add to the plot the recent detention of a Binance employee, Tigran Gambaryan, where allegations surfaced that some Nigerian officials attempted to extort money from him.
SIBAN Leader Appeals for Judicial and Regulatory Justice
Despite the troubles that this has caused, Iwuno does not look at this as some sort of a setback but rather as a move in the right direction by the SEC. Once the licensing regime is clear, he says, foreign investors will set up operations legally in Nigeria, something which he says is of essence to Nigerian startups that have overtime struggled to raise funds due to the absence of clear-cut regulations.
Iwuno said this was likely to change as the SEC went on to approve and process other license applications, hence eliminating the problems. To this effect, most Nigerian entrepreneurs prefer to register their businesses in jurisdictions whose regulations are clear, in order for them to attract foreign investment, which leads to the loss of value from Nigeria.
The Rule of Law Must Be Upheld in the Crypto Industry
In the wake of the development concerning the detention of Tigran Gambaryan, Iwuno called on Nigerian officials to respect the rule of law and best international practices as far as human rights are concerned. He said Nigeria, being one of the major players in Africa in terms of cryptocurrency trading activities, should spearhead the call for regulation in the form of licensing.
Iwuno emphasized that clarity of regulation is important for a healthy and vibrant crypto market; this is a sign of hope, based on the latest actions of the SEC, for an ever-better future for the crypto industry in Nigeria. It is likely to keep on growing, gaining more and more attention around the world, and helping not only local entrepreneurs but also the overall economy.
