Some cryptocurrency experts are urging the Nigerian government to adopt a new approach to regulating the crypto industry by looking at how India has handled similar issues. This call comes after India recently resolved a dispute with Binance, one of the world’s largest cryptocurrency exchanges, over allegations that it violated operational rules.
India’s Financial Intelligence Unit (FIU) imposed a significant fine of $2.25 million on Binance for not registering as a reporting entity. However, instead of taking more drastic actions, India allowed Binance to resume its operations normally after paying the fine and registering. Many experts believe this mature and balanced approach to regulation is something Nigeria could learn from, especially as it deals with its ongoing issues with Binance.
In Nigeria, Binance is currently facing serious charges of money laundering and tax evasion, leading to the arrest and continued detention of one of its executives, Tigran Gambaryan. This situation has sparked a debate among tech experts and crypto traders who believe that Nigeria’s approach might be too harsh and could harm the country’s potential in the growing crypto market.
At a recent event in Lagos, a crypto trader named Mark Nduagibe spoke about the need for Nigeria to change its strategy. He emphasized that cryptocurrency is not a scam or a Ponzi scheme, but rather a legitimate and innovative trading system. Nduagibe argued that Nigeria should strive to be an early adopter of clear and balanced crypto regulations.
He pointed out how India’s handling of the situation with Binance serves as a good example. “India maturely handled the issue with Binance by imposing a $2.25 million fine and allowing the company to continue its operations after complying with regulations. This kind of approach is what Nigeria should consider, instead of keeping an executive in jail, which doesn’t benefit the country financially,” Nduagibe said.
Nduagibe also mentioned that after resolving the issues with India, Binance described the outcome as a significant achievement. It marked Binance’s 19th global regulatory milestone and demonstrated its commitment to anti-money laundering (AML) standards and creating a secure and transparent ecosystem.
He lamented that Nigeria’s approach to regulating Binance has been much more aggressive compared to India’s. While India chose dialogue and compliance, Nigerian authorities have opted for a more punitive route, including the arrest of Tigran Gambaryan, a well-known figure in the crypto industry.
Another trader, Joshua Michael, supported Nduagibe’s views, highlighting the importance of fair and effective regulation as the global cryptocurrency market continues to grow. He pointed out that India’s resolution with Binance shows that regulations can be strict without being oppressive. This approach fosters innovation and growth while respecting the rights of individuals—a model that Nigeria and other countries could follow to build a thriving and sustainable crypto ecosystem
Michael noted that India’s decision not to resort to extreme measures, such as arresting employees, but instead holding Binance accountable through financial penalties and enforcing strict regulatory standards, should serve as a blueprint for Nigeria.
Tech experts are advocating for Nigeria to reconsider its current approach to crypto regulation by adopting a model similar to India’s. They believe this would not only promote a healthier crypto environment in Nigeria but also position the country as a leader in the evolving global landscape of cryptocurrency regulation.
