As the global landscape of cryptocurrency regulation continues to evolve, a growing number of experts within Nigeria are urging the federal government to reassess its stance on crypto oversight. Their calls come in light of India’s recent resolution with Binance, a major cryptocurrency exchange, over allegations of regulatory violations. India’s approach, which involved imposing a significant fine while allowing the company to continue operations, is being hailed as a model for balanced and profitable regulation—one that Nigeria could benefit from adopting.
India’s Financial Intelligence Unit (FIU) took a decisive yet measured approach when it resolved its dispute with Binance. The exchange was accused of operating without the necessary registration as a reporting entity, a serious charge that could have led to more severe penalties. Instead of pursuing harsh punitive actions, the FIU imposed a fine of $2.25 million and required Binance to register appropriately. This resolution allowed the exchange to resume its operations, marking a critical regulatory milestone for the company.
For many in the crypto community, India’s handling of the situation is seen as a mature and constructive method of enforcing compliance while fostering industry growth. In contrast, Nigeria’s ongoing legal battle with Binance, involving charges of money laundering and tax evasion, has taken a much harsher route. The arrest and continued detention of Binance executive Tigran Gambaryan has sparked concerns among industry professionals about the impact of such aggressive tactics on Nigeria’s burgeoning crypto sector.
During a recent event in Lagos, crypto trader Mark Nduagibe voiced his concerns about Nigeria’s current regulatory strategy. He stressed the importance of dispelling misconceptions about cryptocurrency, particularly the notion that it is akin to a Ponzi scheme. “What we are trying to do is to show Nigerians that crypto is not magic, it’s not a Ponzi scheme; rather, it is a standard, genuine technological trading system,” Nduagibe stated. He argued that Nigeria should strive to be among the early adopters of a balanced and fair regulatory framework, one that supports innovation without compromising compliance.
Nduagibe pointed to India’s recent resolution with Binance as a prime example of effective regulation. By imposing a fine and requiring the exchange to register, India was able to ensure compliance without resorting to extreme measures. He suggested that Nigeria could achieve similar success by adopting a more measured approach, rather than allowing key figures in the industry to remain in detention—a move that he believes does little to benefit the country financially or reputationally.
Binance, following the resolution of its dispute with India, described the outcome as a significant achievement. It marked the company’s 19th global regulatory milestone and underscored its commitment to adhering to anti-money laundering (AML) standards. The successful resolution in India highlighted the country’s ability to enforce regulations without stifling innovation, a balance that Nduagibe and others believe Nigeria should strive to emulate.
The contrast between India’s and Nigeria’s regulatory tactics has not gone unnoticed by the broader crypto community. Another trader, Joshua Michael, echoed Nduagibe’s sentiments, emphasising the importance of fair and effective regulatory practices in the rapidly expanding global cryptocurrency market. “India’s recent resolution with Binance shows that regulation can be rigorous without becoming oppressive,” Michael remarked. He praised India’s approach as a blueprint for fostering innovation and growth while respecting the rights of individuals—an approach that he believes Nigeria and other nations should consider adopting to create a thriving and sustainable crypto ecosystem.
Michael highlighted the fact that India managed to hold Binance accountable through financial penalties and stringent regulatory standards, all while allowing the company to continue its operations. This approach, he argued, respects the rights of individuals and avoids the damaging consequences of imprisoning employees as a means of exerting pressure. By focusing on compliance rather than criminalisation, India has demonstrated a progressive model of regulation—one that ensures both oversight and innovation can thrive.
The differences between India’s and Nigeria’s approaches to regulating Binance underscore the need for reform in Nigeria. Michael pointed out that Nigeria’s more aggressive tactics, including the detention of individuals to enforce compliance, not only create an adversarial environment but also risk driving away potential investments. Moreover, such tactics could stifle innovation, which is crucial for the continued growth and development of the country’s crypto sector.
For Michael and others advocating for change, India’s success with Binance serves as a clear demonstration that it is possible to enforce regulations through constructive engagement. This approach not only ensures that businesses operate responsibly but also contributes to the growth of the industry as a whole. By adopting a similar model, Nigeria could foster a more positive regulatory environment, one that encourages innovation while maintaining the necessary oversight to protect investors and the public.
The call for Nigeria to learn from India’s example is not just about resolving the current impasse with Binance. It is also about setting the stage for a more sustainable and forward-thinking approach to crypto regulation in the country. By embracing a strategy that balances enforcement with encouragement, Nigeria could position itself as a leader in the African crypto market, attracting investment and fostering the development of new technologies that could benefit the economy.
As the global crypto industry continues to evolve, the importance of effective and fair regulation cannot be overstated. The experiences of countries like India offer valuable lessons that Nigeria and other nations can learn from. By adopting a more measured and constructive approach to regulation, Nigeria has the opportunity to create a thriving and innovative crypto ecosystem that benefits both businesses and consumers alike.
The debate over how best to regulate the rapidly growing crypto industry is one that many countries are grappling with. India’s recent success in resolving its issues with Binance offers a compelling example of how regulations can be enforced in a way that supports industry growth while ensuring compliance. For Nigeria, this approach could provide a roadmap to resolving its own regulatory challenges, fostering a more positive environment for innovation and investment in the crypto sector.
