The Blockchain Association of Nigeria (SIBAN) called on government agencies and banks not to refuse service to companies operating in the crypto industry.
SIBAN believes that financial institutions should not use the Central Bank of Nigeria’s bias towards cryptocurrencies as a reason to refuse service to blockchain companies. SIBAN reminds that blockchain technology is not only about cryptocurrencies. Cryptocurrencies are created, stored and transferred using this technology, but the blockchain can be applied in such sectors of the economy as agriculture, aviation, banking and finance, entertainment, healthcare, international trade, manufacturing, oil and gas industry, real estate, sports, telecommunications, transport.
Blockchain allows for the secure transfer of information and transparent tracking of it, and this does not require the participation of a centralized authority, the authors of the document emphasize. Artificial intelligence (AI), big data, the Internet of Things (IoT) and blockchain are the latest technologies that do not require the adoption of any laws and regulations, the members of the association believe. In addition, the National Information Technology Development Agency (NITDA) has already presented a blockchain implementation strategy in the country.
SIBAN reminds that cryptocurrencies are not considered illegal in Nigeria. Purchasing, selling, or holding cryptocurrencies is not a civil or criminal offense under local law. Contrary to popular belief, cryptocurrencies based on the public blockchains of Bitcoin or Ethereum can be easily tracked by law enforcement when investigating crimes.
Regarding the Central Bank of Nigeria (CBN) directive on cryptocurrencies dated February 5, 2021, transactions with cryptocurrencies are prohibited only in the banking and financial sector. Therefore, if a cryptocurrency transaction is made without the participation of financial institutions, any individual or legal entity has a legal right to participate. And this should not be a reason to stop servicing the bank accounts of participants, SIBAN believes. In March 2021, the Central Bank of Nigeria confirmed that cryptocurrencies are indeed not banned in the country.
Therefore, SIBAN called on the Nigerian government to stop discriminating against participants in the blockchain and cryptocurrency industry. They are quite often arrested and intimidated, and bank accounts are unjustifiably blocked. This must be stopped immediately by developing rules for regulating the cryptocurrency industry. If banks and law enforcement agencies treat blockchain as negatively as they treat cryptocurrencies, this will reflect badly on the entire banking system of the country, SIBAN is sure.
Recall that in October 2021, the Central Bank of Nigeria launched its own digital currency (eNaira), which operates on the basis of blockchain technology.
