Blockchain Associations Forum calls on Nigeria to review anti-crypto directive
The Blockchain Technology Association of Nigeria (SiBAN) has called on the Central Bank of Nigeria (CBN) to review its current anti-crypto policy that restricts commercial banks and other financial institutions from processing crypto-related transactions.
SiBAN is a founding member of the Blockchain Associations Forum (BAF). SiBAN proposed the prospect at BAF’s virtual summit held recently. The event was attended by over 53 countries.
SiBAN President Senator Ihenyen argued that since Nigerian regulators, especially the CBN, have yet to issue or implement a regulatory framework for crypto-assets, the CBN’s directive restricting financial institutions from facilitating crypto-related transactions is hindering the work of law enforcement agencies regarding the investigation and prosecution of crypto-related crimes in the country.
Lack of coordination between regulatory bodies
Ihenyen added that regulatory bodies should work with crypto industry stakeholders so that proper compliance with rules and regulations can be observed. Such steps would also encourage cooperation between different regulators and companies.
In Nigeria, the National Blockchain Adoption Strategy is championed by the National Information Technology Development Agency (NITDA) and supported by the Federal Ministry of Communications and Digital Economy.
The SiBAN President also called for the National Blockchain Adoption Strategy to be reviewed so that the CBN and all other stakeholders identified in the framework are on the same page.
Although the country has a national Blockchain adoption strategy, Ihenyen pointed out that there is a lack of cooperation among stakeholders, especially regulators such as the Central Bank of Nigeria (CBN), SEC and other key regulators, which had a negative impact on innovation development, policy formulation and regulation in Nigeria’s developing crypto-asset industry.
High crypto adoption in Nigeria
“Nigeria aims to realize up to $10 billion from the Blockchain technology by 2030. SiBAN is recognized as a stakeholder in the National Blockchain Adoption Strategy,” Ihenyen added.
A Chainalysis report published last month stated that lower-middle-income nations like Nigeria fill the list of top 20 countries in the Global Crypto Adoption Index. Nigeria has been ranked 11th on the index list.
Source: Chainalysis
A September 2021 Forbes report said Africa is the fastest growing region in the world for cryptocurrency adoption according to a Chainalysis study.
The crypto market in the region grew by 1200% measured in value during this period. Kenya, Nigeria, South Africa and Tanzania have seen a high level of grassroots adoption of cryptocurrency.
Nigeria is one of the earliest countries in Africa and the world to adopt cryptocurrency. A recent study by Triple A, a cryptocurrency payment gateway app, revealed that the country has one of the highest rates of cryptocurrency adoption. Currently, it has over 22 million crypto users (10.34% of the total population).
According to a Statista report, Nigeria leads the world in cryptocurrency adoption. The Statista Global Consumer Survey (2019-21) revealed that among all respondents in the country, 28% of Nigerians owned or used cryptocurrency in 2019, 32% of Nigerians owned or used cryptocurrency in 2020, and 42% of Nigerians owned or used cryptocurrency in 2021.
