Blockchain stakeholders clampdown on illegal operators

Stakeholders in the Blockchain Technology Association of Nigeria (SiBAN), a blockchain body, have announced that they are filtering out undesirable elements in the blockchain space as part of regulatory compliance. This follows the invasion of fraudulent projects in the space, such as illegal meme coins such as the Mymom token, unlicensed and unregulated crypto hedge fund operators, and others tarnishing the industry’s reputation.

This is as they reaffirmed their dedication to working closely with the Securities and Exchange Commission (SEC) and other relevant agencies to establish a structured and transparent blockchain ecosystem in Nigeria.

The body said, “SiBAN, as a self-regulatory organisation, is making significant strides in fostering global best practices, aiming to create a safe and thriving environment for blockchain technology to grow while protecting investors and ensuring that the industry upholds ethical standards.”

It added that SiBAN’s engagement with SEC and other regulatory agencies is aimed at ensuring that blockchain projects in Nigeria operate within the law, preventing fraudulent schemes, anti-money laundering, terrorism financing and promoting investor protection.

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This was revealed in a statement. Obinna Iwuno, SiBAN’s president said, “Blockchain technology has the potential to revolutionise various sectors, but we cannot allow it to become a breeding ground for unethical practices. We are dedicated to ensuring that blockchain in Nigeria is transparent, secure, and held to the highest standards. This is why cooperation with regulators is critical.”

SiBAN has also extended its collaboration beyond the SEC to include the Nigerian Financial Intelligence Unit (NFIU) and the National Information Technology Development Agency (NiTDA), working towards creating a comprehensive regulatory framework.

SiBAN noted that it has established a detailed code of conduct for virtual asset service providers and members of SIBAN as a guide to ethical conduct and standards within the industry. The code applies to all virtual asset service providers (VASPs) in Nigeria who are registered members of SiBAN. Similarly, it applies to non-members who have signed the Code of Conduct to demonstrate their adherence to the provisions of the Code.

Iwuno added that blockchain’s future must be built on trust and best practices.