Nigerian partners want crypto control that is based on compliance.
Nigeria’s cryptocurrency industry wants a change in the way it is regulated. Key players are pushing for a compliance-focused approach instead of heavy punishments. Nigeria is currently facing ongoing legal issues with major cryptocurrency platforms such as Binance. These issues have raised worries about how the country’s current rules may affect its reputation in other countries.
Obinna Iwuno, who used to be head of SiBAN (Stakeholders in Blockchain Technology Association of Nigeria), is now one of the most important people in this movement. His point of view is that Nigeria’s current regulatory approach, which includes court cases and jailing crypto leaders, is not helpful and could hurt the country’s image around the world.
Iwuno stresses the need for rules that put fines and limits on operations ahead of harsh punishments unless there is a clear violation of the law or a threat to national security. He thinks that Nigeria needs strong rules in order to keep its important place in the global bitcoin market.
Nigeria is in court battles with Binance, which is one of the biggest cryptocurrency platforms in the world, at the same time that this call for a calmer approach is made. Police in Nigeria say the exchange laundered money and didn’t pay taxes, which led to the arrest of a top executive. Aggressive steps by regulators have caused concern in the industry, with people worried that they could slow down growth and make investors lose faith.
Some experts say that Nigeria could learn from how India recently dealt with a similar issue involving Binance. The Financial Intelligence Unit (FIU) in India fined Binance $2.25 million and told the exchange it had to become a reporting company. Binance was able to keep running its business while still following the rules in the area thanks to this approach, which combines enforcement with constructive interaction.
Obinna Uzoije, a policy and data scientist, agrees with this point of view and points out the advantages of a regulatory method that encourages communication and compliance. He thinks that this kind of structure would protect people’s rights, promote new ideas, and help build trust among investors. This would make the Nigerian bitcoin industry more safe and competitive in the long run.
As the discussion about crypto regulation in Nigeria goes on, more and more business leaders agree that a move to a system focused on compliance could give the sector the security it needs to grow. This method would bring Nigeria up to international standards, protect its reputation around the world, and help its cryptocurrency market grow over the long run.
