Inits latest press release, the Stakeholders in Blockchain Technology Associationof Nigeria (SIBAN) argues that Nigeria urgently needs risk-basedregulation for cryptocurrency activities as well as capacity building.
In a press release, SIBANreiterates its strong belief that a February 5, 2021 directive from the CentralBank of Nigeria (CBN) did not ban cryptocurrencies in Nigeria. Yet, despitethere being no law that provides for relief of the arrest of crypto entities,the association’s statement said industry players are being targeted.
“From time to time,instances of undue arrest and detention, bank-account blocking and closures,discrimination, extortion, harassment, intimidation, seizures, and queries, areexperienced by persons or entities involved in any blockchain or cryptocurrencyactivity in Nigeria, particularly since the CBN cryptocurrency directive of2021,” thestatement said.
Besides asking securityagencies to recognize the blockchain and cryptocurrencies, SIBAN implored banksand other financial institutions to “appreciate the difference betweenblockchain technology and cryptocurrency.” The advocacy group said ininstances where cryptocurrency is not involved, banks and other financialinstitutions should not use the CBN directive to justify denying service.
To assist Nigerianagencies stop treating or likening the blockchain to cryptocurrencies, theadvocacy group recommended “capacity building in blockchain and cryptocurrency,particularly AML-CFT for virtual assets, to banks and other financialinstitutions.”
Meanwhile, SIBAN, whichdescribes itself as a pro-innovation and pro-regulation association, said whileit encourages its members to “adhere to the rule of law” it will nevertheless“will explore administrative and legal options to seek redress” in instanceswhere their rights are violated.