Crypto traders in Nigeria call for regulatory maturity

Crypto traders in Nigeria have urged the government to take a reconciliatory approach as it handles its longstanding dispute with Binance, and possibly take a leaf from India.

This follows India’s recent breakthrough in negotiations with the cryptocurrency exchange. Through its Financial Intelligence Unit (FIU), the country fined Binance over $2 million and offered them a chance to regularise their operations.

Nigeria needs to learn from other jurisdictions

In Nigeria, the case has been different. The government has been unmoved by the allegations against two Binance officials who were arrested for money laundering. Their trial date has been set for October.

Crypto traders in Lagos, said the Nigerian government need to take time to understand cryptocurrency instead of treating it with heightened suspicion.

Speaking to journalists at an event, leading Nigerian crypto trader implored his country to emulate what is happening in other jurisdictions.

“As the world is experiencing an evolving landscape of crypto regulation, we want Nigeria to be counted as early adopters,” said the trader.

“For instance, we all can see how India maturely handled the issue with Binance over alleged operating as a reported entity without registration by imposing a $2.25 million fine.”

Crypto trader.

This, the crypto trader added, has marked a significant milestone to crypto regulation, which is what Nigeria should emulate instead of allowing Binance’s executive, Tigran Gambaryan, to languish in jail. According to the trader, this action “does not earn the country a dime.”

Crypto traders in Nigeria think there are other options to take

Another crypto trader who self-identified as Joshua Michael argued that there are other ways of ensuring compliance outside arrests of company executives.

“India, by comparison, did not resort to arresting employees or using extreme measures to force compliance. Instead, it chose to hold Binance accountable through financial penalties and enforce stringent regulatory standards, all while allowing the company to continue operating,” he said.

However, Nigerian authorities have expressed interest in registering cryptocurrency platforms – although they did not mention Binance in their announcement.

Nigeria’s Security and Exchange head, Emomotimi Agama, recently told Bloomberg that they will be licensing cryptocurrency platforms soon.

“Being a crypto enthusiast and fintech enthusiast, I can tell you without doubt that this is going to happen sooner than you think.”

Agama.

“We must support the youths of this country to be able to achieve the benefit that is accruable in fintech. The market size is huge and it is growing,” added Agama.

The Nigerian cryptocurrency space is estimated by the country’s Security and Exchanges Commission to be valued at $400 million. In the face of the weakening Naira, many of the country’s economically active demographic have been exploring cryptocurrencies to preserve the value of their earnings.