The Blockchain Industry Coordinating Committee of Nigeria (BICCoN) has raised alarm over the ongoing turmoil in the country’s blockchain sector, particularly highlighting the protracted legal dispute with Binance.
In a statement signed by Chairman Lucky Uwakwe Arisukwu, BICCoN warned that the prolonged conflict threatens to damage Nigeria’s nascent blockchain industry.
The organization emphasized that unresolved issues are causing Nigerian startups to lose credibility and miss opportunities with global investors and partners.
“The ongoing legal battles have led to a chilling effect on investment, with a notable decline in foreign investments and collaborations with Nigerian Web3 startups,”
BICCoN stated.
The Nigerian government’s legal confrontation with Binance, the world’s largest crypto exchange, has resulted in the detention of two Binance executives on charges of tax evasion. One executive, Nadeem Anjarwalla, escaped custody under mysterious circumstances, while Tigran Gambaryan remains detained.
U.S. Representatives French Hill and Chrissy Houlahan have called for Gambaryan’s release on humanitarian grounds after finding him in poor health at Kuje Prison. Despite these calls, the Nigerian government maintains that legal proceedings are being carried out according to due process.
BICCoN stressed the importance of maintaining strong international partnerships for Nigeria to remain a leader in crypto innovation and economic development in Sub-Saharan Africa. The organization highlighted that the ongoing regulatory issues are severely impacting startups’ ability to secure crucial funding.
The committee urged the Nigerian government to reassure investors of its commitment to a fair and transparent regulatory environment. They suggested measures such as public statements, policy updates, and demonstrating a willingness to resolve disputes amicably. For instance, they asked the government to conduct a thorough investigation on its alleged impact of crypto peer-to-peer (P2P) trading on the Naira’s value and release its findings publicly to build trust among stakeholders.
Finally, BICCoN emphasized the need for the government to develop a clear and comprehensive regulatory framework to guide compliance, taxation, and consumer protection while promoting innovation and growth in the crypto industry.
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