Nigeria’s detention of Binance executive Tigran Gambaryan is impacting the country’s blockchain industry, an organization representing blockchain and crypto associations has warned.
Evidence of this impact includes the decline in foreign investments. The organization also argued that the continued detention of the Binance executive could jeopardize valuable collaborations and associated benefits.
Nigeria’s National Interests
A Nigerian body representing blockchain and crypto associations warned on June 25 that the West African nation’s crackdown against Binance and the jailing of its executive, Tigran Gambayran, has begun to harm the blockchain industry.
The organization, known as the Blockchain Industry Coordinating Committee of Nigeria (BICCON), emphasized the importance of de-escalating the situation to prevent further damage to Nigeria’s blockchain industry.
BICCON acknowledges that national security considerations prompted Nigerian authorities to take action against global crypto exchange platforms.
While recognizing the government’s commitment to safeguarding national security, BICCON also highlights the need to foster the growth and development of the blockchain industry.
Allowing this industry to thrive could contribute significantly to Nigeria’s economic and technological advancement, the organization argued.
To illustrate the impact of Gambaryan’s detention on the industry, BICCON points to what it said is the decline in foreign investments and collaborations with Nigerian Web3 startups.
Collaborations with international entities have also helped local regulators stay informed about the latest trends. BICCON specifically mentions partnerships with firms like Elliptic, which it said has helped to enhance regulators’ ability to combat crypto-related crimes.
Nigeria Must Strengthen International Collaborations, Says BICCON
BICCON contends that continued detention of the Binance executive may jeopardize valuable collaborations and associated benefits.
“The continued detention of Mr. Gambaryan and the attendant tensions are beginning to have ripple effects that threaten Nigerian chances at maintaining and consolidating these crucial collaborations…. This could hinder the growth and development of the counter-terrorism efforts of the government and ultimately affect the broader economy,” BICCON stated.
Therefore, rather than creating an environment that drives them away, BICCON urged Nigerian authorities to not only maintain but also strengthen these international partnerships.
This step is crucial for ensuring the security and integrity of Nigeria’s financial system, as emphasized by the organization.
Besides highlighting the problems caused by Gambaryan’s detention, the statement provides seven recommendations that strike a balance between Nigeria’s national interests and the need to support industry growth while ensuring a fair and transparent resolution.
