Blockchain Industry Coordinating Committee of Nigeria (BiCCoN) Addresses CBN, SEC Position on Cryptocurrency

The Blockchain Industry Coordinating Committee of Nigeria (BiCCoN) has issued a statement addressing the development ongoing in the Nigerian crypto space about the CBN and SEC’s position on digital assets in the country. 

Recall that on the 5th of February, the CBN published a circular prohibiting Financial Institutions from dealing with individuals or corporate entities involved in cryptocurrency and to close off the account of these set of persons. 

The Securities and Exchange Commission (SEC) also issued its statement on the 11th of February, 2021 saying its position is consistent with that of the Central Bank. 

The BiCCoN, an intercommunity working group in Nigeria’s emerging blockchain Industry setup with the aim of promoting safe, collaborative and innovative adoption of blockchain technology in Nigeria has responded to the issues cited by both regulators. BiCCoN is made up of Stakeholders in Blockchain Association of Nigeria (SiBAN), Cryptography Development Initiative of Nigeria (CDIN) and Blockchain Nigeria User Group (BNUG)

BiCCoN’s address is summarized in its statement statement are in the following headings thus;

“1. Nigeria’s blockchain & crypto industry is shocked and disappointed by the directive in the CBN circular; 

2. Emerging technologies, financial technology (FinTech), blockchain, cryptocurrency,  bitcoin, and adoption across the world; 

3. The growth of Nigeria’s blockchain & crypto industry to No. 1 in Africa and a global leader in terms of crypto adoption and market volume; 

4. The crypto industry’s contributions to Nigeria’s economy and competitiveness on the global crypto map; 

5. Legitimate threats and risks of cryptocurrency adoption and the regulatory approach to  mitigating them; 

6. Opportunities Nigeria and Nigerians will miss with the CBN ban and unintended negative consequences; and 

7. Availability of industry stakeholders for a dialogue with the CBN in Nigeria’s best interest.”

Few days ago, the Nigerian Senate invited the Central Bank of Nigeria Governor, Emefiele Godwin to explain before it.

In that session, there was huge dissatisfaction at the CBN’s decision to restrict the easy flow of cryptocurrency transactions in the country with Senator Biodun Olujimi saying “We didn’t create Cryptocurrency and so we cannot kill it and cannot also refuse to ensure it works for us. These children are doing great business with it and they are getting result and Nigeria cannot immune itself from this sort of business.” 

The Senate passed a motion for the CBN Governor, Godwin Emefiele to appear before the Joint Committee on Banking, Insurance and Other Financial Institutions, ICT and Cybercrimes, and Capital Market. And he is expected to explain the opportunities and threats of cryptocurrency trading in Nigeria’s economy and security.