Blockchain association seeks regulation of digital assets operators

The Blockchain Technology Association of Nigeria has urged the Federal Government to regulate digital asset platforms, including Binance and others.

This initiative was in response to recent concerns raised by the activities of Binance, the world’s largest cryptocurrency exchange, operating within the country.

As part of its commitment to fostering responsible practices within the digital asset space, SiBAN said it has made its VASP code of conduct, developed in 2022, publicly available.

The President of SiBAN, Obinna Iwuno, told The PUNCH that the goal was to facilitate the establishment of a responsible and ethical local blockchain industry in Nigeria.

Iwuno acknowledged that there was already compliance with the code of conduct within SiBAN and industry-wide.

However, he emphasised the need for broader compliance beyond SiBAN.

“We believe in being partners in progress with the government. Through the implementation of our code of conduct, we aim to send a clear message about our commitment to ethical conduct and professionalism within the virtual assets industry. SiBAN stands ready to contribute to the growth and regulation of this evolving sector, he said.

The SiBAN president noted that regulating the sector would boost the confidence of users, investors, and even digital currency adoption in the country.

Iwuno expressed willingness and expectations for regulatory engagement with the Federal Government to discuss the future of the digital asset industry and ensure its sanitisation.

He added that the current code of conduct was just the initial step, saying that there was a need for expansion and subsequent legal backing to enforce compliance.

The code of conduct contains 16 codes and applies to VASPs in Nigeria who are either registered SiBAN members or non-members.

Iwuno stated, “We expect the regulators to invite us for a discussion on the way forward to sanitize the digital asset industry.

“This is just a code of conduct that needs legal backing. We cannot expand beyond what we have done; if they need us to help them do that, we can do that.

“If we had this law in place, it would have been much easier to deal with players who violate the laws. Before players come into the sector, they would have to have a license and be properly regulated.”

Two executives of Binance were detained in Abuja last week, after they arrived in Nigeria.

The purpose of their visit was to engage in negotiations with Nigerian authorities amid an ongoing crackdown on the cryptocurrency platform.

The Presidency alleged that Binance and other crypto firms were facilitators for currency speculators and money launderers engaged in criminal activities.

The government claimed that illegal activities conducted on these platforms were significantly contributing to the depreciation of the naira.

In September 2023, Nigeria’s Securities and Exchange Commission officially outlawed Binance Nigeria Limited.

The regulatory body declared that the platform was operating “neither registered nor regulated by the commission” and deemed its operations in Nigeria as illegal.

Despite this regulatory stance, Binance continued its operations, attracting substantial patronage, particularly from youths, suspected speculators, and money launderers.