Nigerian lawmakers raise concern on crackdown on cryptocurrency platforms, launch probe

Following the exit of Binance from the Nigerian market, the country’s parliament is taking further steps to investigate the policy stance of President Bola Tinubu’s administration on cryptocurrency amid perceived policy inconsistency.

The House of Representatives, on Tuesday, resolved to embark on the probe following a motion of urgent importance moved by Ibrahim Isiaka (APC, Ogun).

This motion is coming on the heels of a recent crackdown on crypto trading platforms by the current administration.

The Tinubu administration had initially lifted the ban imposed by the previous administration prompting commendations from some quarters. However, there appears to be a change of policy stance following the pressure on Naira.

PREMIUM TIMES had exclusively reported the detention of two executives of the company, the $10 billion fine the Nigerian government slammed on the company and their subsequent announcement of exit from the Nigerian market.

In the motion, Mr Isiaka said the current administration is sending mixed signals to the international community on its stance on cryptocurrencies amid the arrest of two executives of Binance and utterances by senior government officials.

Mr Isiaka said the actions of the government recently put the country “in bad light with regards to observance of global statutes on fundamental human rights and rule of law and portrays the country as being dishonest and incompetent.”

The lawmaker said the government’s claim that Binance and others are disrupting the foreign exchange market is not backed by sufficient fact. He also questioned the assertion by the Central Bank Governor, Yemi Cardoso, on the impact of Binance on the Naira.

“US Treasury 2022 National Money Laundering Risk Assessment indicates that fiat and traditional financial activities contribute substantially higher (over 200%) than digital assets transactions to global money laundering activities,” he said.

He added, “The conflict with the government about whether or not the crypto exchanges are determining the local foreign exchange rate and usurping the functions of the national bank does not appear to arise in other developed climes where appropriate statutes and regulations have been enacted and enforced to superintend crypto and other digital asset transactions.”

While warning against an outright ban, Mr Isiaka said other jurisdictions have used fines and other means to regulate the cryptocurrency market instead of banning or arbitrary arrest.

“Binance and other cryptocurrency exchanges and cryptocurrency transactions have not been banned in the USA even after a US court ruling in the case filed by the US Securities and Exchange Commission (SEC) against Binance, fined Binance $4.3 billion for violation of anti-money laundering laws, international financial transaction sanctions violations and unlicensed money transmitting and included the resignation of the company’s founder and Chief Executive Officer,” he said.

It is worth noting that the crackdown on cryptocurrency is not just from the executive, the National Assembly seems to be sending mixed signals.