Nigeria's blockchain industry aims to combat corruption through regulatory cooperation

The Stakeholders in Blockchain Technology Association of Nigeria (SiBAN) is intensifying its efforts to combat corruption in the country's blockchain ecosystem. Given the growth of the industry, the association has made clear its intention to work closely with regulators to ensure that blockchain operations in Nigeria are both transparent and ethical. SiBAN's collaboration with the Securities and Exchange Commission (SEC) is an important step towards creating a well-structured and compliant blockchain environment.

A push for regulatory compliance

Obinna Iwuno, the President of SiBAN, reiterated the association's commitment to working with regulators such as the SEC. This partnership aims to promote a structured and transparent blockchain ecosystem that operates within the confines of Nigerian law. Iwuno explained that maintaining ethical standards in the blockchain industry is a top priority and the association wants to ensure that the sector grows responsibly and safely.

This push for compliance comes at a time when the SEC is focused on protecting investors in the cryptocurrency sector. SEC Director General Timi Agama stated during a recent blockchain conference held in Lagos that while the regulator is committed to making the crypto market safer for investors, it will not relax its rules to accommodate all players. Agama's remarks underscored the SEC's determination to enforce strict policies in the industry and ensure that only compliant operators can participate.

Licensing under the SEC incubation program

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

However, demand for these operating licenses remains high, with around 50 crypto operators currently vying for the same regulatory approval. The growing interest in obtaining these licenses indicates that more and more companies are striving to align with regulatory requirements and ensure that their operations are recognized and compliant.

The role of SiBAN in strengthening the credibility of blockchain

As a self-regulatory organization, SiBAN plays a pivotal role in promoting transparency and ethical standards in the Nigerian blockchain industry. Iwuno stressed the importance of working with regulators like the SEC to ensure that the ecosystem is safe and free from unethical practices. SiBAN has taken a proactive stance by filtering out unlicensed operators and fraudulent projects that have previously damaged the reputation of blockchain in the country.

The association has also established a code of conduct for virtual asset providers and its members that 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 behavior will help position Nigeria as a leading center for blockchain technology both locally and internationally.

Positioning Nigeria as a global blockchain hub

Iwuno stressed that the global blockchain community is closely monitoring Nigeria's progress and it is crucial for the country to lead by example. By adopting global best practices and working with regulators, SiBAN believes Nigeria can become not only Africa's largest blockchain hub but also a major player on the world stage. Drawing parallels to the success of India becoming a leading global technology exporter, Iwuno expressed optimism that Nigeria could achieve a similar status with blockchain solutions and expertise.

SiBAN's vision for the future is to make Nigeria a hub for blockchain innovation, where the country's blockchain industry not only grows but also becomes a trusted global leader. By fostering collaboration 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 laying the foundation for long-term growth in Nigeria's blockchain sector. The organization's efforts to maintain ethical standards and work with regulators like the SEC will play a critical 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 of 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.