Regulation
Nigeria’s Recent Crypto Crackdown Calls for Regulation
In Nigeria’s current environment, grappling with inflation rates now approaching 30% and a rapidly depreciating naira, Nigerian officials have turned their attention to crypto exchanges, accusing them of devaluing the naira. However, this sparked a debate within the country’s crypto community.
Executive Secretary of the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN), Rume Ophi, believes it is wrong to blame crypto platforms for the decline of the naira. As an alternative, he advocates better rules rather than a total ban.
Iwa Salami, associate professor at the University of East London, mirrored this way of thinking in a comment. She noted that while digital currency may be associated with illicit practices, it has never been responsible for currency depreciation. Salami further calls for fair regulations that protect financial stability without killing innovation.
This year, Nigerian authorities have stepped up their efforts, resulting in large companies like Binance being investigated and accused of crimes such as tax evasion and fraud.
According to experts, including Salami, leveraging existing frameworks introduced by the Nigerian Securities and Exchange Commission in 2022 could have more impact. These frameworks require exchanges to identify wallet holders involved in suspicious activities, thereby providing oversight while promoting industry growth.