President Bola Tinubu has called for the establishment of global standards to regulate cryptocurrency trading platforms such as Binance.
Speaking during the 79th session of the United Nations General Assembly in New York, Tinubu, who was represented by Vice President Kashim Shettima, said international cooperation was needed to address the challenges posed by digital currencies.
Nigeria’s demand comes amid its legal battle with the world’s largest cryptocurrency exchange, Binance, which the country has accused of facilitating criminal activities and undermining the naira.
“In this age of digital innovation, we must address the emerging divide between the Global South and the Global North, which, with the evolution of artificial intelligence, risks becoming wider still. The UN should work towards eliminating barriers to the digital economy in Africa, such as high costs of Internet services and intellectual property rights.
“Moreso, there is a need to work towards common global standards to regulate cryptocurrency trading platforms. This is the most effective way to provide confidence in these new markets and limit the potential for instability. Our own experience in Nigeria, as in other countries, shows that new technologies, when not properly regulated, can facilitate organised crime, violent extremism and human trafficking. In our case, the trading of crypto-currency helped fuel speculation and undermined macro-economic reforms.
“Separately, we have also witnessed, in rich and poor countries alike, the corrosive impact of unfiltered hate speech and fake news across social media. There is much more that we could and should do, together, to strengthen those guard rails that will help release the most progressive elements of the new technologies shaping our world – and curb those more destructive tendencies,” said Shettima.
In February, two senior Binance executives were arrested in Nigeria over allegations of tax evasion and money laundering.
The Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, had expressed concern about the volume of transactions flowing through Binance, stating, “In the case of Binance, in the last year alone, $26bn has passed through Binance Nigeria from sources and users who we cannot adequately identify.”
Amid the legal battle, one of the Binance executives escaped from custody and left Nigeria, while the other, Tigran Gambaryan, has remained in detention after being denied bail.
Recently, twelve U.S. lawmakers urged President Joe Biden to prevail on Nigeria for Gambaryan’s release.