A Nigerian Crypto proponent has launched a lawsuit challenging government restrictions on owning, using, and trading digital assets. The proponent said the lawsuit seeks to remove the blockade on cryptocurrency exchanges, ensuring all Nigerians have unrestricted access.
Crypto Restrictions Deny Residents Access to Inflation Hedging Tools
Nigerian cryptocurrency advocate James Utudor filed a landmark lawsuit challenging government restrictions on owning, using, and trading digital assets like Bitcoin (BTC) and stablecoins. Utudor claims the lawsuit, naming the Nigerian presidency, finance minister, and attorney general as defendants, aims to protect Nigerians’ fundamental rights.
In an Aug. 9 social media post (formerly Twitter), Utudor argued that restrictions imposed by government agencies and regulators infringe on the rights of digital asset holders and those who wish to own them. Since the beginning of 2024, Nigerian authorities have implemented measures to curb cryptocurrency trade and use, even targeting popular exchanges like Binance.
As reported by Bitcoin.com News, Nigerian officials claimed these global exchanges allowed bad actors to use their platforms for activities contributing to the local currency’s depreciation. Additionally, officials accused the exchanges of failing to pay taxes despite Nigeria’s significant contribution to their revenue.
Proponent Wants BTC Declared Commodity
Utudor’s lawsuit, however, focuses on the characteristics of digital assets and how the restrictions deny residents essential tools for hedging against inflation.
“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 crypto proponent said.
Utudor said the lawsuit seeks to remove the blockade on cryptocurrency exchanges, ensuring all Nigerians have unrestricted access. It aims for a court declaration affirming the rights of Bitcoin and USDT holders and recognizing BTC as a commodity.
The lawsuit also names the Central Bank of Nigeria, the Securities and Exchange Commission, and the Economic and Financial Crimes Commission as defendants. The Nigerian Police Force, National Information Technology Development Agency, and Nigerian Communications Commission are additional defendants.
