The executive secretary of the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN), Rume Ophi, said in an interview that the official Nigerian narrative that global cryptocurrency platforms helped to devalue the naira is unrealistic.

Ophi claimed that with a framework implemented by the Nigerian Securities and Exchange Commission (SEC) in 2022, Nigeria can efficiently control the cryptocurrency sector.

This Might Interest You: Crypto Expert Predicts Potential 33% Decline for Bitcoin After $71,000 Peak

The government shifted its emphasis to platforms offering cryptocurrencies due to the fast drop in the naira and the consequent almost three-decade-high inflation rate of 29.9%. These websites have gained notoriety for their trading and unofficial naira value establishment.

Associate lecturer at the University of East London, Iwa Salami, contended in a recent opinion post that cryptocurrency has been wrongly blamed for depreciating national currencies.

She advised Nigerian authorities to use a mixed regulation strategy rather than a total prohibition since, despite their links with drug trade and money laundering, crypto has never been directly linked to the devaluation of currencies.

“Nigeria must have a balanced approach to control if the sector is to flourish without endangering financial and monetary stability. A stable financial system can effectively distribute resources and control financial hazards. The strategy has to guard investors and customers.”

This Might Interest You: Gambaryan Held on False Charges, Say Former US Agents

Salami underlined that instead of prohibition, Nigerian authorities might achieve their objectives by means of control. Authorities can demand cryptocurrency exchanges expose the identities of wallet holders linked to questionable activity by using the 2022 regulatory framework set by the Nigerian SEC, therefore balancing control and innovation.

The associate professor claims that global acceptance of international standards for crypto assets, including recommendations of the Financial Stability Board, would offer a consistent answer to the issues expressed by Nigerian authorities and other authorities worldwide, fostering clarity and consistency in controlling crypto asset activities.

The post Nigerian Ban on Naira Trading May Backfire appeared first on Coin Engineer.

The SEC cited the need for clarity and integration of feedback from industry stakeholders, particularly in light of recent engagements with the Central Bank of Nigeria (CBN), as the basis for the proposed amendments. Originally issued in May 2022, the rules and guidelines for crypto and digital asset service providers are now under review, with amendments proposed on March 15, 2024.

As per the updated guidelines, digital asset exchanges, offering platforms, and custodians will face an increased application fee of 300,000 naira ($186), up from the previous 100,000 naira ($62). Additionally, the processing fee has surged from 300,000 naira ($186) to 1 million naira ($620), and the registration fee has spiked by 400%, from 30 million naira ($18,620) to 150 million naira ($93,102).

The post Nigerian SEC Plans 400% Hike in Crypto Exchange Fees appeared first on Coin Engineer.