The Blockchain Industry Coordinating Committee of Nigeria (BICCON), has stated it’s not lawful for Nigerian monetary establishments to arbitrarily freeze or shut financial institution accounts belonging to people or entities accused of buying and selling cryptocurrency.
Affected Crypto Entities Told to Seek Legal Advice
In a public statement issued on November 22, BICCON — a coalition of Nigeria’s foremost cryptocurrency and blockchain advocacy teams — advises affected people and corporations to hunt authorized recommendation and redress in courts the place applicable. The physique additionally insists that no Nigerian group, public or non-public, needs to be above the legislation.
As beforehand reported by Bitcoin.com News, Nigerian monetary establishments have been closing or freezing financial institution accounts of entities suspected of buying and selling cryptocurrency since November 3. The establishments have claimed they’re doing this as a way to adjust to the Central Bank of Nigeria (CBN) directive that was initially issued on February 5.
However, regardless of these claims by banks, the blockchain committee insists it’s questionable for the monetary establishments to dam or freeze accounts just because the account holders are cryptocurrency merchants. BICCON’s assertion explains:
We contemplate questionable the actions of deposit cash banks (DMBs), nonbank monetary establishments (NBFIs), and different monetary establishments (OFIs) blocking, closing, and/or freezing the financial institution accounts of people and entities by the mere proven fact that these people and entities are concerned in cryptocurrency buying and selling or cryptocurrency-related transactions with out extra. It shouldn’t be supported beneath the present legal guidelines of the Federal Republic of Nigeria.
The assertion additionally reiterates BICCON’s stance on a CBN directive that was initially utilized by monetary establishments to justify the exclusion of crypto entities from the banking system.
Only Nigerian Legislature Can Criminalize Crypto Trading
Meanwhile, in the identical assertion, BICCON additionally makes use of the renewed highlight on the Nigerian cryptocurrency trade to restate its perception that the CBN is encroaching on the law-making powers of the legislature. BICCON states:
“Since 5 February 2021, a variety of individuals and entities accounts have been closed … Though because the regulator, the CBN has the statutory authority to delimit banking operations, however [the] ordering [of] banks and different monetary establishments to freeze [or close] accounts suspected to be in use for cryptocurrency might not be supported by legislation. This is as a result of there’s at the moment no laws by the National Assembly criminalizing or illegalizing commerce in cryptocurrency in Nigeria.”
The assertion insists the failure to evaluate the CBN’s round “will set a harmful precedent within the nation.” The assertion additionally means that whereas BICCON is in opposition to the “undue discrimination” in opposition to Nigeria’s blockchain & crypto trade, the physique is prepared to collaborate with involved regulators, legislation enforcement businesses, and the federal government.
What do you consider BICCON’s public assertion? Tell us what you suppose within the feedback part beneath.
