Approval of two crypto exchanges by Nigeria's SEC marks a significant step toward regulatory clarity, potentially boosting foreign investment and supporting local entrepreneurs.
A prominent leader in Nigeria’s blockchain industry has welcomed the recent approval of two cryptocurrency exchanges by the nation’s securities regulator, highlighting it as a crucial step in enhancing the reputation of Nigeria’s crypto sector. The leader believes that establishing clear regulatory frameworks will attract foreign investments and significantly benefit Nigerian entrepreneurs. Additionally, he called on the government to ensure adherence to the rule of law concerning the detained employee of a major crypto exchange.
Regulatory Approval Marks Progress for Nigerian Crypto Market
Related: Nigeria’s SEC to Enforce Regulations on Unlicensed Crypto Exchanges
The approval of two digital asset exchanges in Nigeria is seen as a positive development by Obinna Iwuno, the president of the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN). According to Iwuno, this regulatory move is vital in combating the negative perceptions that have plagued the Nigerian crypto industry, especially after the controversial detention of a key executive from a leading global exchange earlier this year.
Recent months have seen Nigerian authorities intensify their scrutiny of cryptocurrency exchanges, citing their role in the depreciation of the national currency. This crackdown has led some global exchanges to reduce their operations or exit the Nigerian market. One major exchange has faced money laundering allegations, and its employee, Tigran Gambaryan, remains detained in connection with these charges.
However, Nigeria’s treatment of this detained employee, along with accusations of attempted extortion, has further damaged the country’s image. In a previous statement, a former SIBAN leader and current industry advocate expressed concern over the harmful precedent this sets. The CEO of the major exchange echoed these sentiments, calling Nigeria’s actions a “dangerous precedent.”
Related: Nigerian SEC to License Crypto Platforms as Digital Asset Market Grows
SIBAN Leader Calls for Fair Treatment and Regulatory Clarity
Despite the challenges, Iwuno views the Securities and Exchange Commission’s (SEC) recent actions under the leadership of Director General Lamido Yuguda as a step in the right direction. He argues that the introduction of a clear licensing regime provides much-needed regulatory clarity, encouraging foreign investors to legally enter the Nigerian crypto market and set up operations within the country.
Related: Nigeria Abandons Accusations of Money Laundering Against Binance Official
Iwuno emphasized that the absence of clear regulations has also negatively impacted Nigerian entrepreneurs. He noted that many foreign investors require companies to be registered in jurisdictions with well-defined regulations before offering funding. As a result, Nigerian startups often operate as foreign entities, leading to a loss of potential value within the country.
The SIBAN president also asserted that Nigeria, as a leading nation in Africa’s cryptocurrency trading landscape, should have been proactive in regulating the industry and issuing licenses. Concerning the ongoing detention of Tigran Gambaryan, Iwuno urged Nigerian authorities to adhere to the rule of law, uphold global standards, and respect human rights.
