Some crypto technology experts have called on the federal government to consider new approach to handling the crypto regulation issues in the country by taking a leaf from India.
The calls are coming after India recently resolved the rift it had with Binance over allegations of voilating operating rules.
As a way of settling the issues, India’s Financial Intelligence Unit (FIU), slammed a hefty fine of $2.25 million on the cryptocurrency exchange, asked it to register as a reporting entity and allowed it to resume operations normally.
For what they termed a mature and more profittable way of handling crypto regulation issues, some tech experts, particularly crypto trading professionals have asked Nigeria to borrow a leaf from India and end the lingering empasse with Binance.
Recall that the Cryptocurrency exchange is facing a trial in Nigeria for money laundering and tax evasion charges, which led to the arrest and continued detention of one of its Executives, Tigran Gambaryan.
At a recent event in Lagos, a crypto trader, Mark Nduagibe, while fieding questions fron tech reporters said: “what we are trying to do is to show Nigerians that crypto is not magic, it’s not ponzi, rather it is a standard, genuine technological trading system.
” As the world is experiencing an evolving landscape of crypto regulation, we want Nigeria to be counted as early adopters.
” For instance, we all can see how India maturely handled the issue with Binance over alleged operating as a reported entity without registration by impising a $2.25 million fine.
“That marks a significant milesyone to crypto regulation. That is what Nigeria should do instead of allowing the Exchage’s executive languish in jail – an action which does not earn the country a dime.
After settling the India’s impasse, Binance described it as an achievement, which marks it’s 19th global regulatory milestone and underscores its commitment to adhering to anti-money laundering (AML) standards and fostering a secure, transparent, and efficient ecosystem.
Nduaguibe lamented that India’s approach to regulating Binance contrasts sharply with that of Nigeria, adding that while India opted for a balanced resolution through dialogue and regulatory compliance, Nigerian authorities have taken a far more aggressive and punitive approach. Most notably, the arrest of Tigran Gambaryan, a prominent figure in the industry.
Also, another trader who introduced himself as Joshua Micheal, corroborated Nduagibe, saying “As the global cryptocurrency market continues to expand, the need for effective and fair regulatory practices becomes even more critical. India’s recent resolution with Binance shows that regulation can be rigorous without becoming oppressive. It provides a blueprint for fostering innovation and growth while respecting the rights of individuals—an approach that Nigeria and other nations should adopt to create a thriving and sustainable crypto ecosystem.
“India, by comparison, did not resort to arresting employees or using extreme measures to force compliance. Instead, it chose to hold Binance accountable through financial penalties and enforce stringent regulatory standards, all while allowing the company to continue operating.
“This has ensured that the rights of individuals are respected, preventing the damaging consequences of imprisoning employees as a means of exerting pressure. India’s decision to focus on compliance rather than criminalization showcases a progressive model of regulation—one that ensures both oversight and innovation thrive without resorting to punitive measures that can disrupt business operations and undermine investor confidence.
“The difference in regulatory tactics between India and Nigeria highlights the need for reform. Nigeria’s actions, which include detaining individuals in an attempt to enforce compliance, not only create an adversarial environment but also risk driving away potential investments and stifling innovation”.
For him, India’s success with Binance demonstrates that it is possible to enforce regulations with constructive engagement, ensuring that businesses can operate responsibly and contribute to the growth of the industry.
That is the model he is advocating for Nigeria and other countries who in one way or the other have to deal with crypto regulations.
