SIBAN urge Nigerian Law Enforcement Agencies to Regulate and not Demonize Crypto Industry

By: Henry Felix

SIBAN urge Nigerian Law Enforcement Agencies to Regulate and not Demonize Crypto Industry

April 22, 2022 7:21 AM

According to a recent report from the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN) urging law enforcement agencies within the country to stop demonization of the blockchain and crypto industry


Advocating for a clear Regulation of Crypto Activities

SIBAN the blockchain and crypto industry association of Nigeria announced to the public and law enforcement agencies to stop demonizing and discriminating against players in the blockchain and crypto industry. According to its recent press release, SIBAN argues that Nigeria urgently needs a clearer regulation for capacity building and crypto activities. 


In a circular released on February 5, 2021 by the Central Bank of Nigeria (CBN) on matters relating  to cryptocurrency regulation. The stakeholders in Blockchain Technology Association of Nigeria (SIBAN) reiterates that the CBN did not ban cryptocurrency in Nigeria. With no law which cites for the persecution or arrest of crypto entities within the country, crypto industry players are still being targeted says the association.


Instances of undue arrest and detention, bank-accounts freezing and closures, discrimination, extortion, harassment, intimidation, seizures, and queries, are experienced by individuals or entities involved in blockchain or cryptocurrency activity in Nigeria, particularly since the Central Bank of Nigeria (CBN) cryptocurrency directive of 2021, gthe statement reads.


However, SIBAN have also asked banks and other financial institutions to appreciate the difference cryptocurrency and blockchain technology. The association further claims that in cases where they is none crypto involvement, banks and financial institutions should not hold onto the CBN directive as an avenue to denying services blockchain firms.  


The advocacy group also opined that if the regulators can’t find a way of differentiate between cryptocurrencies and blockchain, imploring that such stance would have impact on the entire banking system. The statement warns:


If treated as the same, the Central Bank of Nigeria (CBN) very own eNaira which is claimed to be built on blockchain and any other product or services built on the blockchain would be affected in country’s financial and banking system as well. This, of course, is not the target of the CBN.


The advocacy group which brands itself as a pro-innovation and pro-regulation association, said while it encourages its members to play by the rules of law it will nevertheless “explore administrative and legal options to seek redress” in situations where their rights are being violated. In contrast, the statement suggested that ‘SIBAN’ is willing to cooperate with regulators and law enforcement agencies whenever such a request is made.