Crypto enthusiasts are warned not to block the nara trade exchange
Some Nigerian crypto-enthusiasts believe that the country's decision to end trading of the naira in cryptocurrency could worsen matters with the fiat currency.
In an interview with Cointelegraph, Rume Ofi, the Secretary General of Stakeholders of the Blockchain Technology Association of Nigeria (SiBAN), stated that the official Nigerian narrative that Nigerian international cryptocurrency platforms contributed to the devaluation of the naira may not be valid.
Ofi said Nigeria will be able to effectively regulate the cryptocurrency industry by 2022 with the framework introduced by the Nigerian Securities and Exchange Commission (SEC).
Due to the rapid decline of the naira and the resulting 3-decade high inflation of 29.9%, the government has turned its attention to platforms that provide kriptovalyutnyh services. These websites have become famous for trading and establishing an informal value for the Naira.
In a recent opinion piece, Ewa Salami, an associate professor at the University of East London, argued that crypto has been unfairly accused of undermining national currencies.
Crypto, despite its links to money laundering and drug trade, has never been directly linked to the destruction of the currency, so she suggested Nigerian authorities adopt a more balanced approach to regulation rather than an outright ban.
“Nigeria needs a balanced approach to regulation if the industry is to thrive without compromising financial and financial stability. A stable financial system can efficiently allocate resources and manage financial risks. The approach must protect consumers and investors.”
Regulation targeting crypto exchanges
Cointelegraph previously reported on its move on Nigerian cryptocurrency trading platforms. Nigerian authorities They blamed these platforms for the rapid devaluation of the naira in 2024. Nigerian authorities have investigated Binance, which has since faced numerous charges, including allegations of tax evasion.
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Salami emphasized that the Nigerian authorities can achieve their goals with the guidance rather than the prohibition. Using the 2022 regulatory framework established by Nigeria's SEC, authorities can require cryptocurrency exchanges to reveal accounts linked to suspicious activities to wallet owners, striking a balance between surveillance and innovation.
According to the assistant professor, the adoption of international standards for crypto assets such as the recommendations of the Financial Stability Board will provide a uniform solution to the concerns raised by Nigerian authorities and other regulators around the world, promoting transparency and consistency in regulating crypto asset activities.
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