• Tuesday, April 16, 2024
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Group seeks FG collaboration to regulate digital asset providers

Group seeks FG collaboration to regulate digital asset providers

The Stakeholders in the Blockchain Technology Association of Nigeria (SiBAN) has called for the Federal Government’s collaboration in regulating Virtual Assets Service Providers (VASP).

This initiative was in response to recent concerns raised by the activities of cryptocurrency exchange service providers like Binance, operating within the country.

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According to a statement signed Obinna Iwuno, President of SiBAN, the VASP code of conduct, developed in 2022, would foster responsible practices within the digital asset space.

Iwuno said the primary goal of the regulatory framework was to ensure the proper oversight of digital asset service providers, contributing to a more secure and transparent environment for both businesses and consumers.

He said the code of conduct was already available in the public domain to facilitate the establishment of a responsible and ethical local blockchain industry in Nigeria, Africa’s largest economy.

Iwuno mentioned that there was already compliance to the code of conduct within SiBAN and industry-wide.

However, he emphasized the need for broader compliance beyond SiBAN, hence making the document available to the public.

Iwuno stated that when the sector is regulated, it would boost the confidence of users, investors, and even digital currency adoption in the country.

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He expressed willingness and expectations for regulatory engagement with the federal government to discuss the future of the digital asset industry and ensure its sanitization.

The president said the current code of conduct is just the initial step, adding that there was a need for expansion and subsequent legal backing to enforce compliance.