The Blockchain Industry Coordinating Committee of Nigeria (BICCoN), released a press statement, condemning the recent ‘overreach’ of the Central Bank of Nigeria.
Recall that the CBN instructed banks to stop processing cryptocurrency transactions in February 2021. The CBN again recently instructed Nigerian banks to block, close and freeze bank accounts of individuals who are suspected to be engaging in crypto-related transactions in the country.
According to the press release, the BICCoN explained that the recent actions taken by the financial regulator and banks operating in the country are ‘questionable.’ It reads, “We consider questionable, the actions of deposit money banks (DMBs), nonbank financial institutions (NBFIs), and other financial institutions (OFIs) blocking, closing, and/or freezing the bank accounts of individuals and entities by the mere fact that these individuals and entities are involved in cryptocurrency trading or cryptocurrency-related transactions without more.”
Read: Nigeria’s interest in bitcoin drops due to CBN clampdown
What you should know
The BICCoN claims to be an intercommunity working group, which began operating on January 28, 2021. The mandate of the group came as a result of the need to check the proliferation of crypto scams in the industry.
BICCoN is constituted by the three major blockchain bodies/communities in Nigeria, which are the Blockchain Nigeria User Group (BNUG), Cryptography Development Initiative of Nigeria (CDIN), Stakeholders in Blockchain Technology Association of Nigeria (SiBAN) and independent stakeholders who may not yet be affiliated with any of the three blockchain bodies/communities.
The press release explained that the current actions of the financial regulator and banks operating in the country are not supported under the current laws of the Federal Republic of Nigeria. It reads, “Affected individuals and entities are advised to seek legal advice for the purpose of evaluating the individual circumstances of their cases.”
Read: Bank of England warns banks on approach to adopting crypto
The association also advised affected individuals to take legal actions against these organizations in situations where individual rights have been infringed upon. They said, “Where it is advised that their right has been infringed upon without legal justification, legal redress should be sought in our courts accordingly. Nigeria is governed by laws. All agencies, bodies, institutions, and organizations, whether public or private, are expected to be subject to the rule of law.”
The press release also emphasized the position the association took in February, when the CBN banned DMBs, NBFIs and OFIs from providing banking and other financial services to persons and/or entities transacting in cryptocurrency or operating cryptocurrency exchanges within their systems. It reads, “We restate the same position we took in our 13 February press release when we maintained that the Central Bank of Nigeria (CBN) has by its 5 February circular on cryptocurrency overstepped its statutory bounds and should review its step.”
The press release also referenced the January 12, 2017, circular, where the CBN ‘permitted’ banks to offer their services to cryptocurrency-related transactions, stating that the circular issued in February 2021 is not just a mere reiteration. It stated, “The CBN permitted these DMBs, NBFIs, and OFIs to provide banking services and other financial services to virtual currency exchangers/customers subject to ensuring that these exchangers/customers have effective Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) controls that enable them comply with customer identification, verification, and transaction monitoring requirements.”
Read: United States Government seizes $6.1 million worth of crypto from cybercriminals
As required in that circular, it is only when banks and other financial institutions are dissatisfied with the controls put in place by the virtual currency exchangers/customers should the customer relationship be discontinued immediately.
The press release went further to explain that the association will ‘maintain’ its earlier position that the CBN is encroaching on the law-making powers of the National Assembly, contrary to the provisions of chapter 4 of the 1999 Constitution of the Federal Republic of Nigeria (as amended). It further reads, “There is currently no legislation by the National Assembly criminalizing or illegalizing trade in cryptocurrency in Nigeria. Therefore, it is questionable whether the CBN has the statutory power to order the (permanent) freezing [or closure] of these accounts.
“Besides, Nigeria’s money laundering and anti-terrorism laws contemplate the freezing of individual or specific accounts, not a blanket closure of the accounts of a set of persons, entities, or entire industry by virtue of their involvement in cryptocurrency trading or services, a lawful business. If the CBN’s circular is not reviewed, it will set a dangerous precedent in the country.”
Due to this recent development, the association is introducing a “5-point Crypto Advocacy Agenda in Nigeria. (5 CAAN).” The association explained that they will be engaging 5 major stakeholders in their pro-crypto adoption campaign. The players include the Presidency, the Finance Minister with the Ministry of Finance, Budget and National Planning, the law enforcement agencies, the National Assembly and the courts.
This institution (BICCoN) should instead take CBN and all these overzealous DMBs to court and not leave it to individuals.
BICCoN should approach competent legal Chambers with SAN whose specialty is in financial matters towards upholding the constitution.
The other 5 point strategy is also welcome.
It seems to me that the political class or politicians would be more than willing to pass a bill outlawing crypto, since it’s likely their interest the CBN governor is representing. However, on the contrary, wouldn’t an economically empowered youth population be less interested in the national cake etc than a hungry and economically deprived one.
The CBN governor is passing his boundary demonstrating wickedness against the the youth by blocking the little source of income they have access to even when there is no trace of terrorist transactions on crypto, all wallets holders passes through KYC which enable the banks to trace any fraudulent act just like normal currency so I don’t see the need for this wickedness
With the US Fed soon to commence its Tapering off policy as a means of weaning the economy off the unpresinted stimulus measures taken during COVID-19, dollars is going to be relatively scarce soon. A reasonable central bank would have tried hedging it’s bets and find a way of injecting as much dollars into the economy during this time of relative access. But Nigeria is filled with too much destuctive short sighted interests in high places.
Welldone BICCoN. Please go a step further by taking the CBN to court on behalf of the helpless youths and people of Nigeria.
I’m sure people will respond positively to a go-fund-me campaign, to raise funds for this project.
Emefiele has destroyed the Nigerian economy and is clearly the most inept CBN Governor in Nigeria’s history. Several million youths are depending on crypto business to survive. Now Emefiele wants to send them to a life of crime. His own children are living large though.
Besides, why should accounts be closed on ‘mere suspicion’ of engaging in crypto business??? CBN has made itself the prosecutor and judge in a matter it is not constitutionally appointed to, rather than manage the economy which is in a mess.
Please take this matter to the courts. The people are behind you.✌?
I personally see this actions by the CBN as raw wickedness and overzealous. If the CBN officials are not into crypto, how do they know how to trace people accounts via P2P platforms. Just imposing wickedness on the law-abiding youths who are leveraging on the power of the internet and technology. They will kill crypto only if they succeed in killing internet and/or technology. How many employment does CBN creates annually for these youths. You want to stop them and create more unemployment, lawlessness, crime and the likes in Nigeria. An idle hand they say is devil’s workshop. We will surely organize a physical protest if they don’t stop this nonsense. ENOUGH IS ENOUGH
We need to sue cbn.the fact that there is money laudering have they banned people from having bank accounts.they should block those accounts having traced to money laudering and hard drugs.
It’s a good one, we need to push further, enough is enough, this present Administration is so insensitive to Nigerian plight, whatever programs for me, they bring out in the name of Poverty Alleviation is a Scam and Mere eye-Service, they need be voted out really come Elections, A Messiah is once again waiting to deliver us, Cryptos Approval, Acceptance, Use, Adoption etc., is on the way my Pple, but I sincerely urge us all to keep our Bad mouth and attitude when such Administration comes onboard once again please, cos we were stupid, ignorant, ungrateful and as black as we can be..!, hence God allowed Satan to come and keep our lives like this in shambles, Fiat is fading off, even the so called high handed $, £,€, etc are going off, but Naija Managers’ are still slumbering in there Porched houses and corporate offices, time for everything..!