Blockchain companies in Nigeria ask for cryptocurrency Regulation from CBN

It is known that the usage of cryptocurrencies are yet to be regulated in Nigeria. Cryptocurrency is a form of digital exchange used all over the world, which is valued like physical cash and can be used to make payments for goods and services. So many other African countries have accepted and embraced the use of cryptocurrency. But In Nigeria, the story is different at the apex bank in the country, the Central Bank of Nigeria (CBN) is yet to regulate the use of cryptocurrencies in Nigeria and this has recorded a negative effect in the business of blockchain companies in Nigeria.

It should be recalled that earlier into the year, 2017, the Central Bank of Nigeria (CBN) promised to set up a committee that will look into the issue of cryptocurrency in the country and create a road map for blockchain and cryptocurrency regulation in the country.

There were lots of expectations that the Central Bank of Nigeria (CBN) will not hinder the use of digital currencies in the country but instead set up a committee or a channel through which the regulation of cryptocurrency will be achieved. But instead, the Central Bank of Nigeria went ahead to warn and caution Nigerians to be wary and careful of investments in cryptocurrencies (March 2018).

The apex bank states that digital currencies in cryptocurrencies such as; Bitcoin, Ripples, Litecoin, Dogecoin, Monero, Onecoin and digital exchanges such as NairaEx were not regulated or licensed by the Central Bank of Nigeria (CBN).

Also, it should be recalled that on January 12, 2017, the Central Bank of Nigeria (CBN) issued a circular to financial institutions such as banks on any virtual currency operations in the county.

Many cryptocurrency enthusiasts has lost interest in engaging in any cryptocurrency business while some see it as scam because it hasn’t been endorsed and regulated by the Central Bank of Nigeria. The apathy of Nigerians towards cryptocurrency has affected the businesses of so many exchanges and blockchain companies in Nigeria because many cryptocurrency dealers, investors and enthusiasts in Nigeria are not protected by the law, thus, they will not be able to seek redress in a court of law in the event of failure of the exchangers or collapse and liquidation of the business.

Cryptocurrency trading in Nigeria has faced challenges and problems, one of them is the non-regulation of the cryptocurrencies in the country. A lot of investments which are to be placed and invested in the country are pushed to other countries of the world such as Rwanda

The major financial influences in the country such as the Central Bank of Nigeria and the Securities and Exchange Commission (SEC) do not recognize Bitcoin, Ripples, Litecoin, Dogecoin, Monero, Onecoin and other forms of cryptocurrencies.

The Securities and Exchange Commission (SEC) has emphasized that no company or individual has been authorized to receive deposits from the public to provide any form of investment for financial services in Nigeria.

This is the major reason why blockchain companies have requested for digital currencies to be regulated in Nigeria. If not, the country will not record growth and development in the cryptocurrency sector because the investments meant for the country would be diverted to other countries.