In the wake of the challenges surrounding cryptocurrency regulation in Nigeria, some cryptography experts have called on the federal government to consider a new approach to addressing the issue of cryptocurrency regulation in Nigeria, following India’s lead.
The call comes after India recently resolved its standoff with Binance over alleged violations of its operating rules. As part of the settlement, India's Financial Intelligence Unit (FIU) imposed a huge fine of $2.25 million on the cryptocurrency exchange, asked it to register as a reporting entity, and allowed it to resume operations as normal.
Calling it a mature and more profitable way to address the issue of crypto regulation, some tech experts, especially those specializing in crypto trading, have called on Nigeria to follow India’s example and end its protracted impasse with Binance.
As you may know, the cryptocurrency exchange is currently on trial in Nigeria on charges of money laundering and tax evasion, which has resulted in the arrest and detention of one of its executives, Tigran Ghanbaryan.
At a recent event in Lagos, cryptocurrency trader Mark Nduagibe explained that cryptocurrencies are not a shady or illegal practice. “What we are trying to do is show Nigerians that cryptocurrencies are not magic or a Ponzi, but rather a standard and genuine technological trading system,” he said.
“As the world goes through an evolution in cryptocurrency regulation, we want Nigeria to be counted among the early adopters.
“For example, we all know how India responded maturely to the issue of Binance for allegedly operating as a reported entity without registration by imposing a $2.25 million fine.
“This marks an important milestone in cryptocurrency regulation. Nigeria should do so instead of wasting its administration's time on restrictive measures that will not benefit the country a cent.”
“Binance described this as an achievement after resolving the India impasse. This marks the company's 19th global regulatory milestone and underscores its commitment to adhering to anti-money laundering (AML) standards and fostering a safe, transparent, and efficient ecosystem.”
Nduagibe lamented that India's approach to regulating Binance contrasts sharply with Nigeria's, adding that while India has opted for a balanced solution through dialogue and regulatory compliance, Nigerian authorities have taken a much more aggressive and punitive approach.
Most notably, the arrest of industry figure Tigran Gambarian. Another crypto trader, Joshua Michael, corroborated Nduagibe’s statement, saying:
“As the global cryptocurrency market continues to expand, the need for effective and fair regulatory practices becomes even more important. India's recent settlement with Binance demonstrates that regulation can be strict without being oppressive.”
This is a blueprint for fostering innovation and growth while respecting individual rights, and it is the approach Nigeria and other countries should adopt to build a thriving and sustainable cryptocurrency ecosystem.
“In comparison, India did not arrest employees or take extreme measures to enforce compliance. Instead, it chose to hold Binance accountable by imposing fines and allowing the company to continue operating while enforcing strict regulatory standards.”
“This ensures that individual rights are respected and prevents the harmful consequences of incarcerating employees as a means of exerting pressure.”
India's decision to focus on compliance rather than criminalization signals a progressive regulatory model that ensures that both oversight and innovation can thrive, without resorting to punitive measures that can disrupt business operations and erode investor confidence.
“The differences in regulatory strategies between India and Nigeria highlight the need for reform. Nigeria's actions, including detaining individuals to enforce compliance, not only create a hostile environment but also risk scaring away potential investment and stifling innovation.”
For him, Binance’s success in India demonstrates that constructive engagement can help enforce regulations, ensure companies operate responsibly, and contribute to the growth of the industry.
He therefore warned Nigeria and other countries working on regulating cryptocurrencies to follow India's model.
