A prominent figure in Nigeria’s blockchain industry has praised the recent approval of two cryptocurrency exchanges by the country’s securities regulator, viewing it as a crucial step toward enhancing Nigeria’s standing in the global crypto community. The leader believes that clear regulatory frameworks will not only attract foreign investors but also support the growth of local entrepreneurs. Additionally, he urged Nigerian authorities to uphold the rule of law concerning the detained Binance employee.
Nigerian SEC Brings Regulatory Clarity to Crypto Market with New Approvals
The approval of two digital asset exchanges by the Securities and Exchange Commission (SEC) is being lauded as a significant advancement for Nigeria’s crypto industry, according to Obinna Iwuno, the president of the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN). Iwuno argues that this move is essential to countering the negative perceptions that have plagued Nigeria’s crypto space, particularly in the wake of recent crackdowns on exchanges like Binance, which has been accused of contributing to the depreciation of the naira.
As reported earlier, Nigerian authorities have intensified their scrutiny of crypto exchanges, leading some global platforms to either reduce their operations or exit the market entirely. Binance, a focal point of these actions, faces serious allegations, including money laundering, and one of its employees, Tigran Gambaryan, remains detained in connection with these charges.
However, Nigeria’s treatment of the Binance employee, along with accusations of attempted extortion against the exchange, has further tarnished the country’s image. Former SIBAN leader Senator Ihenyen expressed concerns about these actions, and Binance CEO Richard Teng has warned that Nigeria’s approach could set a dangerous precedent for the global crypto industry.
SIBAN President Calls for Resolution in Gambaryan’s Case
Iwuno views the SEC’s recent actions under Director General Lamido Yuguda (often referred to as “Agama”) as a welcome move that provides the much-needed regulatory clarity. He emphasized that the establishment of a clear licensing regime will allow foreign investors to enter the Nigerian crypto market through legal channels, promoting the growth of the industry.
In a statement to the press, Iwuno noted that the absence of clear regulations had previously hampered Nigerian entrepreneurs. He believes that the SEC’s approval of these exchanges, along with the processing of other license applications, will begin to address this issue.
“Startups in Nigeria have long struggled with securing funding, as many foreign investors insist on companies being registered in jurisdictions with clear regulations. This has forced Nigerian entrepreneurs to operate as foreign entities, leading to a loss of value for our country,” Iwuno explained.
The SIBAN president asserted that Nigeria, as a leading player in Africa’s cryptocurrency scene, should have been at the forefront of regulation and licensing. Regarding the detention of Gambaryan, Iwuno urged Nigerian officials to adhere to the rule of law and uphold international standards of human rights.
For more insights on Nigeria’s regulatory moves, see Nigerian SEC Issues First Crypto Exchange Licenses After Industry Crackdown and Nigeria Grants Approval to Two Platforms for Bitcoin and Cryptocurrency Trading.
