Nigerian Law and Digital Currency like Bitcoin

Nigeria is the most populous country in Africa and the 7th most populous country in the world. A cryptocurrency (Bitcoin) in Nigeria stemmed from the boom in technology. Technological advancement in every sector has forced organizations to become more tech-savvy. This will enable organizations to analyze and achieve more in real-time. The World Bank considers Nigeria an emerging economy.
Cryptocurrency is a cryptographic commodity intended to act as a mode of trade. Financial security depends on strong encryption techniques. It operates off any central bank.
Sending cryptocurrency involves both public and private keys. Charges on transfers are minimal. This allows users to steer clear of the excessive charges financial institutions give.

What does the law say about cryptocurrency?
A cryptocurrency (Bitcoin) is legal in Nigeria. In Nigeria, digital currency and trading are not prohibited. The Nigerian Securities and Exchange Commission warned of cryptocurrency scams and fraudulent activities.
However, there is indeed no regulation in this regard at the moment.
Femi Gbajabiamila, a speaker at the House of Representatives, urged Nigeria to develop regulations on digital assets. This is to ease adoption so the country won’t lag in advancement.

The legislator spoke about the role of the Nigeria Deposit Insurance Corporation (NDIC) in the establishment of simple frameworks for Nigerian banks. The majority of top banks in Nigeria are already considering investing in building infrastructure for blockchain and cryptocurrencies, according to some resource persons in the crypto-space.
Various jurisdictions have suggested that cryptocurrency has the status of either security, money, property, cash equal, asset or service, making it easier to legislate and regulate.

What is NDIC’s stand?
The Nigerian Deposit Insurance Corporation (NDIC) is a major factor in Nigeria’s financial safety net which has also committed to the regular development of the country’s financial stability.
Their stance remains that people should be careful when it comes to cryptocurrency.

The Nigerian Securities and Exchange Commission (SEC) formed the Fintech Roadmap Committee to create a mechanism for the regulation of Virtual Financial Assets (VFAs) and their exchanges in Nigeria.

Some of the Committee’s purposes is to test cryptocurrency using case studies from countries such as Switzerland, the United States and the United Kingdom.

Some key industry players believe that a regulatory approach could benefit the sector. For now, Nigerian cryptocurrency space is not yet ready for regulation.

The related CBN Legislation does not forbid the activity of crypto-businesses in Nigeria. The Securities and Exchange Commission (SEC) has released a formal notice urging the formal to show vigilance when it comes to trading in cryptocurrencies. The SEC does not yet have a clear rule on participation in crypto-businesses or on ICO’s

In the area of law, bitcoins, as a topic for legislation, may tend to be beyond the legal expertise of the CBN. Thus a subject for statutory study and analysis. The focus should be on whether cryptocurrency should be a currency or service. This is according to BalogunHarold.com

In conclusion, crypto-businesses are usually allowed under Nigerian law. Developers and entrepreneurs can set up cryptocurrency services/businesses in Nigeria. It is wrong to say that there is no regulatory supervision of crypto-business in Nigeria.

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