In a bold move against the Nigerian government’s stance on digital assets, cryptocurrency advocate James Utudor has filed a lawsuit seeking to lift restrictions on cryptocurrency exchanges.
This landmark case names the Nigerian President, Minister of Finance, and Attorney General, as well as several other government agencies, as primary defendants.
Utudor’s lawsuit, filed on August 9, argues that current regulations violate Nigerians’ fundamental rights, particularly their access to digital assets such as Bitcoin (BTC) and stablecoins. It claims these restrictions deny residents the tools they need to protect against inflation and participate in the global digital economy.
Since the beginning of 2024, Nigerian authorities have intensified measures to curb the use of cryptocurrencies, targeting popular exchanges such as Binance. Authorities argue that these platforms facilitate illegal activities and contribute to the devaluation of the Nigerian naira. There have also been accusations that these exchanges evade tax obligations despite generating significant revenue from Nigerian users.
Utudor expressed concern over these measures in a social media post on August 9, saying they undermine the rights of digital asset owners and those looking to invest in cryptocurrencies. “Bitcoin and other digital assets are vital tools to protect savings from inflation and enable international transactions, especially in light of the naira devaluation and foreign exchange scarcity,” Utudor said.
Utudor’s legal action not only aims to unblock cryptocurrency exchanges, but also seeks a court declaration confirming the rights of Bitcoin and USDT holders. Utudor is pushing for Bitcoin to be recognized as a commodity, which would provide greater legal clarity and protection for digital asset transactions in Nigeria.
*This is not investment advice.
