As Nigeria grapples with the rapid decline of the naira and an almost three-decade-high inflation rate of 29.9%, the government has turned its attention to cryptocurrency exchanges, sparking concerns among local crypto enthusiasts.

Rume Ophi, the executive secretary of the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN), believes that the decision to halt naira trading on cryptocurrency exchanges could exacerbate the challenges facing the country's volatile currency. Ophi argues that blaming global cryptocurrency platforms for the naira's depreciation is impractical and that Nigeria can effectively regulate the cryptocurrency industry through frameworks introduced by the Nigerian Securities and Exchange Commission (SEC) in 2022.

In a recent opinion piece, Iwa Salami, an associate professor at the University of East London, challenged the notion that crypto is solely responsible for devaluing national currencies. Salami suggests that Nigerian authorities should adopt a balanced regulatory approach rather than imposing a complete ban. While acknowledging concerns about money laundering and illicit trade, she emphasizes the importance of protecting consumers and investors while fostering innovation.

Salami proposes leveraging the regulatory framework established by the Nigerian SEC to address these concerns. By requiring cryptocurrency exchanges to disclose the identities of wallet holders involved in suspicious activities, authorities can strike a balance between oversight and innovation. Additionally, she advocates for global adoption of international standards for crypto assets, such as those recommended by the Financial Stability Board, to provide a unified solution to regulatory challenges worldwide.

The call for regulation over prohibition echoes previous crackdowns on cryptocurrency trading platforms in Nigeria. While authorities have targeted platforms like Binance, alleging tax evasion and contributing to the naira's depreciation, Salami believes that effective regulation can address these concerns without stifling innovation or harming financial stability. With the right approach, Nigeria can navigate the complexities of regulating cryptocurrency while fostering a thriving digital economy.