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Nigeria’s Blockchain Industry Aims to Fight Corruption Through Regulatory Collaboration

nigeria blockchain adoption

The Stakeholders in Blockchain Technology Association of Nigeria (SiBAN) is intensifying its efforts to tackle corruption within the country’s blockchain ecosystem. As the industry grows, the association has made clear its intention to work closely with regulatory bodies to ensure that blockchain operations in Nigeria are both transparent and ethical. SiBAN’s collaboration with the Securities and Exchange Commission (SEC) marks a significant step toward creating a well-structured and legally compliant blockchain environment.

A Push for Regulatory Compliance

Obinna Iwuno, the President of SiBAN, reaffirmed the association’s commitment to working with regulators like the SEC. This partnership is aimed at fostering a structured and transparent blockchain ecosystem that operates within the boundaries of Nigerian law. Iwuno explained that maintaining ethical standards in the blockchain industry is a top priority, and the association seeks to ensure that the sector grows responsibly and securely.

This push for regulatory compliance comes at a time when the SEC is focused on safeguarding investors in the cryptocurrency space. The Director General of the SEC, Timi Agama, stated during a recent blockchain conference in Lagos that while the regulator is committed to making the crypto market safer for investors, it would not relax its rules to accommodate all players. Agama’s remarks underscored the SEC’s determination to enforce strict guidelines in the industry, ensuring that only compliant operators can participate.

Licensing Under the SEC’s Incubation Programme

As part of its efforts to regulate the blockchain industry, the SEC has introduced the Accelerated Regulatory Incubation Programme, through which it has granted licenses to select crypto operators. Busha Digital Limited and Quidax Technologies Limited were among the recent recipients of these licenses, marking their compliance with the regulatory framework set by the SEC. This licensing programme reflects the SEC’s goal of creating a safer environment for both operators and investors within the blockchain space.

However, the demand for these operational licenses remains high, with around 50 crypto operators currently vying for the same regulatory approval. The growing interest in securing these licenses suggests that more companies are eager to align themselves with the regulatory requirements, ensuring that their operations are recognized and compliant.

SiBAN’s Role in Strengthening Blockchain’s Credibility

As a self-regulatory organization, SiBAN is playing a pivotal role in promoting transparency and ethical standards within Nigeria’s blockchain industry. Iwuno emphasized the importance of cooperation with regulators like the SEC to ensure that the ecosystem is secure and free from unethical practices. SiBAN has taken a proactive stance by filtering out unlicensed operators and fraudulent projects that have previously tainted the reputation of blockchain in the country.

The association has also established a code of conduct for virtual asset service providers and its members, which promotes ethical behavior and industry standards. By adhering to these guidelines, SiBAN aims to build a more trustworthy and credible blockchain ecosystem in Nigeria. According to Iwuno, this commitment to ethical conduct will help position Nigeria as a leading hub for blockchain technology, both locally and internationally.

Positioning Nigeria as a Global Blockchain Hub

Iwuno highlighted that the global blockchain community is closely monitoring Nigeria’s progress, and it is essential for the country to set a strong example. By embracing global best practices and collaborating with regulators, SiBAN believes that Nigeria can become not only the largest blockchain hub in Africa but also a major player on the global stage. Iwuno drew parallels to India’s success in becoming a global leader in technology exports, expressing optimism that Nigeria could achieve a similar status with blockchain solutions and expertise.

SiBAN’s vision for the future includes making Nigeria a hub for blockchain innovation, where the country’s blockchain industry not only grows but also becomes a trusted global leader. By fostering cooperation between industry players and regulators, SiBAN hopes to build a blockchain ecosystem that is both innovative and secure, encouraging more investors to enter the space with confidence.

A Long-Term Vision for Blockchain in Nigeria

With SiBAN’s proactive measures and commitment to transparency, the association is setting the foundation for long-term growth in Nigeria’s blockchain sector. The organization’s efforts to uphold ethical standards and collaborate with regulatory bodies like the SEC will play a crucial role in shaping the future of blockchain in the country. By filtering out unscrupulous operators and maintaining a code of conduct for the industry, SiBAN aims to ensure that the blockchain space in Nigeria is held to the highest possible standards.

The collaboration between SiBAN and the SEC is a step in the right direction for the Nigerian blockchain industry. As the country continues to embrace blockchain technology, the focus on transparency, security, and regulatory compliance will help position Nigeria as a credible and influential player in the global blockchain market.

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