The Stakeholders in Blockchain Technology Association of Nigeria (SiBAN) has taken proactive steps to address the regulatory vacuum surrounding cryptocurrency exchanges in the country.
SiBAN recently released a comprehensive self-regulatory guideline titled the “Code of Conduct for Virtual Assets Service Providers in Nigeria.”
This guideline applies to both voluntary members and non-members who choose to adopt its standards.
Context of the Regulatory Initiative
SiBAN’s move comes in the wake of tensions between the Nigerian government and crypto exchanges, particularly Binance, over allegations of market manipulation.
SiBAN President, Obinna Iwuno, highlighted the necessity of such guidelines, attributing the current challenges to the absence of adequate regulation in the sector.
Key Provisions of the Code
The Code of Conduct encompasses various codes aimed at combating financial crimes and ensuring ethical business practices within the crypto space.
For instance, Code 7 emphasizes the importance of preventing, detecting, and disclosing financial crimes, including anti-money laundering (AML) and combating the financing of terrorism (CFT) measures.
Additionally, Code 11 underscores the significance of corporate governance and resilience, emphasizing the need for effective structures and strategies to mitigate risks.
SiBAN’s Expectations and Enforcement Mechanisms
SiBAN anticipates that the implementation of these guidelines will demonstrate to the government the commitment of local digital asset exchanges to uphold global ethical and professional standards.
President Obinna Iwuno emphasized the association’s enforcement mechanisms, including rigorous compliance checks and adherence to Know Your Customer (KYC) protocols.
SiBAN aims to ensure that members operate transparently and ethically, fostering trust among customers and investors.
Collaborative Approach with the Government
In advocating for crypto regulation, SiBAN emphasizes the importance of collaboration between industry stakeholders and the government.
The association views self-regulation as a crucial first step toward legitimizing the crypto sector, urging the government to provide regulatory frameworks that align with industry standards and promote growth.
SiBAN believes that government intervention should complement existing self-regulatory efforts rather than undermine them, fostering a conducive environment for sectoral development.
Conclusion
SiBAN’s proactive stance in establishing self-regulatory guidelines reflects its commitment to fostering transparency and accountability within Nigeria’s crypto ecosystem.
By addressing regulatory gaps and promoting best practices, SiBAN aims to instill confidence among stakeholders while advocating for constructive engagement with regulato
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