Nigeria is currently experiencing significant changes in its cryptocurrency regulatory environment. A roundtable discussion is scheduled for May 6, organized by the Blockchain Industry Coordinating Committee of Nigeria. The focus of the discussion will be on the future of regulations in Nigeria. Fintech platforms like Moniepoint and PalmPay have started warning their users about crypto transactions to comply with the directives of Nigeria’s Central Bank (CBN). There are also rumors surrounding the Nigerian cryptocurrency exchange, Patricia, potentially facing closure after an incident last year.
The trial of Binance executives Tigran Gamaryan and Nadeem Ajarwalla in Nigeria has been postponed until later in May, adding to the challenges in the crypto regulatory environment in the country.
Nigeria is set to host a major dialogue on crypto regulation. On May 6, the Blockchain Industry Coordinating Committee of Nigeria will hold a roundtable with Dr. Emomotimi gama, the Director General of Securities Exchange Commission. The meeting aims to discuss the regulation of cryptocurrency in Nigeria.
The roundtable will involve exchange operators, wallet providers, and other virtual assets service providers, along with industry associations like the Blockchain Nigeria User Group and the Digital Currency Consortium. This event is crucial given the current uncertainties around cryptocurrencies in Nigeria, with the government scrutinizing crypto usage and limiting access to exchange websites.
The Nigerian SEC has proposed increasing registration fees for cryptocurrency exchanges, causing debates within the industry. Uwakwe hopes that this roundtable will lead to positive regulatory changes that benefit all parties and promote innovation in the crypto sector.
In response to directives from the CBN, Nigerian fintech companies such as Moniepoint and PalmPay have advised their clients against engaging in cryptocurrency transactions. These moves follow the CBN’s circular in December 2023, which lifted restrictions on financial institutions, allowing them to provide services to crypto businesses.
Amidst mixed messages from the CBN, Nigerian customers and businesses are seeking clear guidelines on handling cryptocurrencies in the country. The situation is causing confusion among stakeholders, who are awaiting consistent and unbiased directives from regulatory agencies.
Fejiro Hanu, CEO of the Nigerian crypto-exchange Patricia, has denied closure rumors and emphasized that the platform continues to operate normally. The exchange faced controversy following a hacking incident in 2023, leading to difficulty for customers in accessing their funds. To address this, Patricia introduced a new strategy involving Patricia Tokens to reimburse customers’ assets.
The trial of Binance executives Tigran Gamaryan and Nadeem Ajarwalla in Nigeria has been delayed once again until May 17. Both executives face charges of money laundering and tax evasion, with Binance also facing separate charges of tax evasion by Nigeria’s Economic and Financial Crimes Commission. These developments have raised questions within the crypto community about the timing and implications of these legal actions.
