Let's talk about Cryptocurrency in Nigeria
Stakeholders in the financial sector have called for a regulatory framework for blockchain and cryptocurrency transactions in Nigeria.
They made the call on Tuesday in Abuja, at a blockchain/cryptocurrency policy conference organised by the National Chamber Policy Centre (NCPC) of the Abuja Chamber of Commerce and Industry (ACCI).
In February 2021, the Central Bank of Nigeria (CBN) directed banks to close accounts of persons or entities involved in cryptocurrency transactions.
“The NCPC is, therefore, convinced that perceived evil of cryptocurrency should create a sense of urgency for the state to regulate rather than shut off or shut down the sector,” Rasheed said.
President, Association of Capital Market Academics of Nigeria, expressed concern that at present, there was no law specifically directed at cryptocurrencies or crypto assets.
He said there is an identity crisis in relation to the treatment of virtual currencies and assets in Nigeria.
“This explains in part why the CBN and the Securities and Exchange Commission appear to be asserting overlapping jurisdiction for market participants transacting in virtual currencies or other digital assets.
He said that the existing financial regulations were inadequate to monitor and guide cryptocurrency activity in the financial system.
It is also at the best interest to protect the financial system from key risks such as fraud, money laundering, and the irreversibility of erroneous transactions.
“The government should do more to support blockchain innovation and adoption through supporting public sector adoption, creation of a flexible regulatory environment to allow experimentation, and using targeted regulatory enforcement,’’ he said.
He noted that cross-jurisdictional cooperation and government-industry collaboration were essential to developing a blockchain and cryptocurrency policy for Nigeria.
Last month, CBN also penalised banks for flouting the directive on cryptocurrency.
He said the outright ban will cost Nigeria so much, being a leader in the cryptocurrency space.
He added that regulation was important to check irregulariies while emphasising the importance of embracing the potential of cryptocurrency together with blockchain technology.
Thanks for Reading..... through.
This is a loud joke because the financial system they are trying to protect is already a mess and it has been like this before Nigerians started getting involved with cryptocurrency.
Funny enough, Binance sponsors a lot of event in Nigeria and they are always welcomed because they bring money to the table. This move a clear act of shamelessness from Nigeria as a country.
Honestly, but I think they are coming back to there senses and many stakeholders are seeing reason with the Blockchain technology.
there was a time they where blocking people's account that have anything to do with cryptocurrency, there reason was, most Nigerians are using it for fraud.
I remember years back before the ban, I did a transaction indicating in my receipt the purpose of the transfer, ( for BTC ). my money was hang upto 6 months.. before they refund it .
is crazy, but I think they are seeing reason to adapt to Blockchain technology
What we know for sure is that decision making in that part of the world takes epileptic approach. If countries start adopting Crypto, Nigeria will definitely be among the last set to join. That's how passive they can be when it matters most.
I don't think Nigeria will be the last set to join, Nigerians are already evolving, check the top list of traders on cryptocurrency in Africa you will find Nigerians at the top.
But the Leaders governing the country have little or no knowledge of the impact cryptocurrency can bring.. especially to the economy ecosystem.
I believe we will get there soon..
Nigerians on one side are actively participating in Crypto, but Nigeria as a country (based on the legal standing) will surely be among the last set of countries to adopt Crypto.
Some blockchain based startups founded by Nigerians in Nigeria has already relocated their HQ to more Crypto-friendly countries. This shows that Nigeria is surely not thinking of getting involved with Crypto any time soon.
The country is in all kinds of mess and they surely know how to misplace priorities.
Currently, they are debating about it in Nigeria