Crypto Currency Regulation in Nigeria

Crypto Currency Regulation in Nigeria

October 06, 2021

It is pertinent to understand what crypto currency is all about. Simply defined, crypto currency is the buy and selling of digital assets via exchanges. Examples of crypto currency is bitcoin, Ethereum, Litecoin etc. Crypto currency can be mined, farmed, sold or bought.

The cryptocurrency market is decentralized and the implication is that it is not governed by a centralized government but runs across streams of networks. Although, individual countries regulate the cryptocurrency market in their country, there is no law that regulates crypto currency in Nigeria but this does not in any way render the activities of cryptocurrency illegal.

In February, 2021 the Central Bank of Nigeria banned banks and other financial institutions from trading in crypto currency and enabling payment for crypto currency in Nigeria. This move has left the cryptocurrency market unregulated in Nigeria and by implication cryptocurrency is not an acceptable legal tender in Nigeria.

Although, Crypto currency itself has not been declared illegal, it is what the end user does with it that might amount to illegality.

Crypto currency is a digital asset that is different from the commonly used legal tender (Currency) and the way this by nature makes it hard to regulate.

In conclusion, it is imperative that the Financial regulatory bodies in Nigeria regulate the activities of crypto currency and declare it a legal tendency to accommodate the fast changing global market value.

Team 618 Bees

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached.

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