Nigerian Advocates File Lawsuit to Overturn Crypto Ban

Nigerian Bitcoin advocates James Utudor and others filed a landmark lawsuit against the government's prohibitions on the ownership, use, and trading of digital assets such as Bitcoin (BTC) and stablecoins. Utudor claims the lawsuit aims to protect Nigerians' fundamental rights and seeks to lift the blockade on cryptocurrency exchanges, ensuring that all Nigerians have unrestricted access.

James Utudor, a Nigerian supporter of cryptocurrencies, filed a historic case against government limitations on the possession, use, and exchange of digital assets like Bitcoin (BTC) and stablecoins. According to Utudor, the action seeks to defend the fundamental rights of Nigerians and names the attorney general, finance minister, and presidency of Nigeria as defendants.

Utudor stated in a social media post on August 9 (previously Twitter) that regulations and government agencies' restrictions violate the rights of people who own digital assets and those who aspire to do so. Nigerian authorities have been enforcing laws to restrict cryptocurrency trading and usage since the beginning of 2024; some of these laws even target well-known exchanges like Binance.

Nigerian regulators said these international exchanges permitted dishonest people to utilize their platforms for actions that contributed to the depreciation of the local currency, as reported by Bitcoin.com News. Furthermore, authorities charged the exchanges with not filing taxes in spite of Nigeria's substantial revenue contribution.

Supporter Sees Bitcoin as a Deemed Good

However, the main focus of Utudor's complaint is on the features of digital assets and how the limitations deprive locals of vital resources for inflation hedging.

"Bitcoin and other digital assets are vital tools for protecting savings from inflation and enabling international transactions, particularly in light of naira devaluation and foreign exchange shortages," the proponent of crypto currencies stated.

According to Utudor, the lawsuit aims to lift the restriction on bitcoin exchanges so that all Nigerians can access them without any limitations. It seeks a judicial ruling that upholds the rights of Bitcoin and USDT holders and acknowledges BTC as a commodity.

The Economic and Financial Crimes Commission, the Securities and Exchange Commission, and the Central Bank of Nigeria are also named as defendants in the complaint. Other defendants include the Nigerian Communications Commission, the National Information Technology Development Agency, and the Nigerian Police Force.