The Blockchain Trade Coordinating Committee of Nigeria (BICCON) mentioned it was not authorized for Nigerian monetary establishments to arbitrarily freeze or shut financial institution accounts owned by people or entities accused of buying and selling in cryptocurrency.
Affected Crypto Entities Ought to Search Authorized Recommendation
In an viewers declaration launched on November 22, BICCON – a coalition of Nigeria’s main cryptocurrency and blockchain advocacy teams – advises affected people and companies to hunt authorized recommendation and redress in court docket, the place acceptable. The physique additionally insists that no Nigerian group, public or personal, must be above the regulation.
As beforehand reported by Bitcoin.com Information, Nigerian monetary establishments have closed or frozen the financial institution accounts of suspected cryptocurrency buying and selling entities since November 3. The establishments claimed they had been doing so with a view to adjust to the Central Financial institution of Nigeria (CBN). directive initially printed on February 5.
Nevertheless, regardless of these claims from the banks, the blockchain committee insists that it’s questionable for monetary establishments to dam or freeze accounts just because the account holders are cryptocurrency merchants. BICCON’s assertion explains:
We regard as questionable the actions of depository banks (DMB), non-bank monetary establishments (NBFI) and different monetary establishments (AIF) freezing, closing and / or freezing the financial institution accounts of people and entities by the mere incontrovertible fact that these people and entities are concerned in cryptocurrency buying and selling or cryptocurrency associated transactions no extra. It isn’t supported by the present legal guidelines of the Federal Republic of Nigeria.
The assertion additionally reiterates BICCON’s place on a CBN directive that was initially utilized by monetary establishments to justify the exclusion of crypto entities from the banking system.
Solely the Nigerian legislature can criminalize the crypto commerce
In the meantime, in the identical assertion, BICCON additionally makes use of the renewed highlight on the Nigerian cryptocurrency business to reaffirm its perception that the CBN is encroaching on the legislative powers of the legislature. BICCON declares:
“Since February 5, 2021, plenty of accounts of individuals and entities have been closed… Though as a regulator, the CBN has the statutory energy to delimit banking operations, however [the] ordered [of] banks and different monetary establishments to freeze [or close] accounts suspected of getting used for cryptocurrency might not be supported by regulation. It’s because there’s at the moment no Nationwide Meeting laws criminalizing or illegalizing cryptocurrency buying and selling in Nigeria. “
The assertion insists that failure to look at the CBN round “will set a harmful precedent within the nation.” The assertion additionally means that whereas BICCON is in opposition to “undue discrimination” in opposition to the Nigerian blockchain and crypto business, the physique is able to work with related regulators, regulation enforcement businesses and the federal government.
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