A Nigerian blockchain advocacy group has stated that the government's decision to prohibit access to cryptocurrency trading platforms such as Binance, Kraken, and Coinbase will not "help Nigeria build the much-needed trust and confidence in the financial system." The advocacy group also stated that the Nigerian Communications Commission's mandate to telecommunications providers may be inconsistent with the "norms of a democratic society."

The Nigerian government's move to restrict access to cryptocurrency trading platforms such as Binance, Kraken, and Coinbase will not "help Nigeria build the much-needed trust and confidence in the financial system," according to a blockchain advocacy group. The Blockchain Industry Coordinating Committee of Nigeria (BICCON) claims that such an embargo merely offers Nigerian authorities a "temporary respite."

However, BICCON fears that the Nigerian government's "reactionary action" would eventually drive cryptocurrency-related operations underground.

"Based on available data, Nigeria's present action may—once again—gradually push virtual asset adoption and transactions underground, a place that largely impairs efficient and effective supervision, monitoring, and investigations," BICCON said in a press release.

The advocacy group focused on the instruction issued by the Nigerian Communications Commission (NCC) to telecom operators, arguing that it is not in line with democratic standards. The group claimed that although the government may benefit temporarily from this, in the long run, the inhabitants' confidence and trust will be damaged.

Thus, BICCON recommended that the Nigerian government think about enlisting the services of Virtual Asset Service Providers (VASPs) rather than continuing with current approach.

The Binance Invited to Prove Good Faith

The advocacy group stressed the significance of upholding the rule of law during the adjudication process in relation to the arrest of executives from Binance. According to BICCON, doing this will make a good impression on watchers inside and outside of Nigeria. Additionally, the organization urged Binance to assist the authorities to the fullest.

"Binance and other VASPs operating in Nigeria are urged to adhere strictly to all applicable laws and regulations in the nation. Binance must exhibit sincerity. Binance should fix the problems and make sure that everything is resolved, especially considering its prominence in the virtual asset market.

Meanwhile, the group addressed the Central Bank of Nigeria's accusations about the $26 billion being laundered through Binance in their seven-page statement. BICCON said at the end of the statement that it was prepared to have a positive conversation with the relevant regulators.

How do you view BICCON's approach to addressing the issues ailing the Nigerian cryptocurrency industry? Kindly leave your remarks in the space provided below.