SIBAN Cites Lack of Regulation For The Surge of P2P Transactions in Nigeria

Members of the Blockchain Technology Association of Nigeria (SiBAN) have pointed to the absence of regulation as a catalyst for the proliferation of peer-to-peer crypto trading in Nigeria.

During an X space session addressing the state of web3 in Nigeria, SiBAN President, Mr. Obinna Iwuno, emphasized this issue. The session occurred against the backdrop of the government’s recent crackdown on crypto transactions in the country.

Mr. Iwuno highlighted that had the government regulated the crypto industry, peer-to-peer trading wouldn’t have escalated to its current level. He stressed that regulated exchanges would have been the preferred method for transactions, rather than relying on peer-to-peer platforms. Additionally, he cautioned that without intervention, the system could be exploited by criminals for illicit activities.

In his words,

“We need regulation as an industry. Regulation will help us more than an unregulated sector would help us. In fact, the reason why fingers are being pointed at P2P presently is because of the lack of regulation. And if the government had regulated the industry, I bet you that there would have been no rise in P2P because everybody would have been trading through regulated agencies and exchanges and we wouldn’t have an issue of so much rise in P2P that is unregulated and now being accused of economic sabotage and manipulation of forex rates, which is affecting the economy”.

Moving forward the SIBAN president urged for stakeholders to join hands on deck to ensure the industry is well regulated, which according to him can help the nation achieve economic development and wealth creation.