Nigeria's recent decision to suspend naira trading on cryptocurrency platforms has sparked discussions among Nigerian crypto enthusiasts and experts. Rume Ophi, representing the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN), challenges the notion that global crypto platforms are solely responsible for the naira's depreciation, labeling it an impractical narrative.

Ophi advocates for a regulatory approach aligned with the Nigerian Securities and Exchange Commission's (SEC) 2022 framework to effectively manage the cryptocurrency industry. This stance emerges amidst the naira's alarming devaluation and a staggering 29.9% inflation rate, prompting government scrutiny toward platforms facilitating cryptocurrency services. These platforms have inadvertently shaped an informal valuation standard for the naira through trading activities.

Iwa Salami, an associate professor at the University of East London, shares insights in a recent opinion piece countering the blame placed on crypto for currency devaluation. Salami underscores the need for Nigeria to adopt a nuanced regulatory stance rather than a blanket ban. Despite crypto's associations with illicit activities like money laundering and drug trade, Salami argues for a balanced approach safeguarding financial and monetary stability while nurturing industry growth.

Salami emphasizes, "Nigeria needs a balanced approach to regulation if the industry is to thrive without harming financial and monetary stability. A stable financial system can allocate resources efficiently and manage financial risks. The approach must protect consumers and investors."

The regulatory landscape has witnessed Nigeria's crackdown on crypto trading platforms, attributing rapid naira depreciation to these entities. Notably, Binance faced heightened scrutiny and allegations, including tax evasion charges, in this context.

Salami proposes that regulatory frameworks, such as the Nigerian SEC's guidelines from 2022, offer a pathway to achieve regulatory goals without resorting to outright bans. These frameworks enable authorities to mandate cryptocurrency exchanges to disclose wallet holder identities linked to suspicious activities, striking a balance between oversight and fostering innovation.

Highlighting the importance of global cooperation, Salami advocates for aligning with international standards like the Financial Stability Board's recommendations. This alignment could offer a cohesive approach addressing concerns raised not only by Nigerian authorities but also by regulators globally, ensuring clarity and consistency in crypto regulation.