Bitcoin Forum

Just came across the news of the SEC of Nigeria wanting to start regulating cryptocurrency and other crypto related companies. I guess they're tired of fighting the movement, so now they have no other option but to join the other countries with young citizens having interest in bitcoin by trying to regulate it. Some months back, It was even a crime just mentioning bitcoin in the country as you would likely get investigated and probably get your account frozen if observed to be trading bitcoin. This was the warning from the Central bank of Nigeria but can't confirm if this came into full effect.

Here's some important key points to note in the SEC document
While I'm happy this will reduce the rate of scammers defrauding innocent Nigerians of their funds mostly due to their ignorance and greediness, I'm also having a mixed feeling about this getting abused (manipulated) to their (the government) selfish interested in the sense that they mandate any company wanting to operate in Nigeria to cooperate with them in leaking users sensitive information nevertheless it's a welcome development and I hope for more positive news to come in future...

What's your take on this new development in my country?

Well, for me there are some advantages of regulating cryptocurrencies for their country and somehow there will be some disadvantages.

For me, there are more advantages than disadvantages. One of the advantage is the one you mentioned, scams for sure will decrease.
Another one is it may reduce the money laundering, because money laundering is possible to done in cryptocurrency.
Disadvantage for me is some people may start to find difficulty of buying or owning Bitcoin, if they are not so strict, lot of documents needed for some KYC or AML policies. But overall, it's good.

Based on what I had read before, Nigeria 7th placer of the most popular country and it has the largest economy in Africa. So I don't have doubt that they also have the largest cryptocurrency usage in their country. And, the good thing now that your government totally embraced cryptocurrency rather than fighting on it, instead, just accept and regulated for a better economy.

Probably instead of having hate in Bitcoin from the variety of fraudulent activities like the Ponzi scheme, they are now regulated and save their people form this fraudulent activity of people in Nigeria.

Indeed, that's good news. I hope other countries would do the same. Like Bangladesh, as I have heard they are still banning Bitcoin.

Nigeria is a good market for the cryptocurrencies. Legalised of bitcoin into the market will increase the trade of that coin. Whenever their will increase in trade of coin, surely it reflect on the price. A sad new for few people is, still banning of bitcoin in Bangladesh. The government doing, because it's very small economic based country.

On the positive side, at least cryptocurrency is now being acknowledged in the country. However, I take exception to this^[1]:


It is because I don't think Bitcoin is a security. Now the problem is that somebody has to argue that Bitcoin isn't a security.


I wonder who would appear before the commission and argue that Bitcoin shouldn't be classified as a security when Bitcoin doesn't have an issuer nor a sponsor. Nobody owns Bitcoin. It is not registered under anybody's name.

[1] https://sec.gov.ng/statement-on-digital-assets-and-their-classification-and-treatment/

I think every country has an interest in being able to regulate everything related to trade, especially about crypto which we know is very well known and has a lot of impact on every country. but the state also does not want to be trapped by something that is not yet regulated which allows it to determine whether something is legal or not, as well as crypto trading.
because of course there are many problems that will occur besides of course it can benefit the state in collecting taxes from each transaction.

The news is very good, of course, because this will provide changes to the country itself and also to the surrounding countries which might also glance at the pros and cons if it is implemented in their country.

I see this as a country with a high percentage of users and an interest in crypto projects around the world. Loosening and regulation will significantly boost people's access to cryptocurrencies even more in Nigeria and regional countries.
I see this project that accepts the Nigerian currency Naira. Maybe this project is from this country.
https://markaccy.io/

I watched the cheering news on channelTV yesterday this is indeed a major breakthrough for cryptocurrencies users in Nigeria and they can now have a sign of relief, Regulation of cryptos by SEC is much preferable than outright ban embarked upon by CBN fews years back.
This came at time when there had been an increasing growing numbers of legal bitcoin traders amount the youths which is prominent in the popular forum nairaland and availability of a bitcoin ATM machine in Lagos indicates an increasing number and wider acceptability of cryptos in Nigeria.


 

While it's a good start, I feel that this pretty much applies to every other country that have regulated/ legalized the circulation of crypto.

For those relying on scams, they should be afraid since their activities could be tracked but for us, what is there to hide? If we're mainly trading, that shouldn't raise any red flags.

It's a welcomed development in your courntry to legalized cryptoccurrency, and if some other countries will legalized cryptoccurrency especially bitcoin in their domain I hope it will enhance constant rising of bitcoin and increase crypto exchange in crypto market.
I seen with approved the of bitcoin security in "Nigerian" it will make many people to have the interest to invest cryptoccurrency.

It is really a good news for Nigerian people who are involved with cryptocurrencies. It will really assists others countries where still cryptocurrencies trade are illegal. They may think its reality and can legalize by imposing some rules.
If crypto legal in a country, new projects will developed from there. It is just start of journey in Nigeria.

Well, this is with mixed feelings for me. Government's interference in a matter like this that it truly doesn't understand in totality has always left a bitter taste in the mouth. If just a few months ago trading cryptocurrency in Nigeria was frowned at by the CBN, what has changed now? Has anything? Perhaps, the Nigerian politicians are jumping on the bandwagon to make a friendly statement on cryptocurrency so they look good in the eyes of the world. However, before now youths in Nigeria were already enmeshed in crypto trade just like they are on Forex Trading too without caring what government position was on it. I sincerely hope this won't be another avenue for politicians in Nigeria to covet revenue from that quarters to their private pockets without actually regulating activities.

This is good news overall. Regulations usually start out as stringent, especially if the one imposing them doesn't know much about what they are regulating yet. Eventually, as the government spots the areas that don't require regulating, the resistance will finally start to subside until it's easier for everyone.

I just realized that cryptocurrency is going through the same ordeal as "hemp". The plant is illegal in most parts of the world because of its psychoactive effect. I can't wait for governments to realize that they can get rid of the 1 substance causing the psychoactive effect and take advantage of the 99 other substances that have proven medical benefits.

Whatever it is that's scaring some governments from legalizing cryptocurrency is slowly diminishing. I just hope to see mass adoption in my lifetime.

  

The more they understand bitcoin or crypto, the more they will be accommodating with this technology. Even if they read all the articles pertaining to bitcoin, if they will not try it first hand, they will not understand the true benefits brought by cryptocurrency. So having bitcoin as legal in Nigeria is a very welcome progress. So these politicians can openly try dealing with bitcoin also, and see the good side of having this crypto.

This is a salient issue. Regulation is about centralizing a system and that involves identity unveiling. I don't think the Nigerian system is ripe for this they want to dive into.

There are other big issues they should tackle and not to wander into the crypto space. There are electricity challenge, inflation of price of crude oil, health sector in comatose, no good roads available, striking workers etc. They need to tackle basic amenities and gradually learn from technologically advanced country.



Don't be surprised this might be defeated because of high level of corruption.

Bitcoin legalization rate continues to increase. Nigeria has been one of the countries supporting Bitcoin and it is not surprising to see that the government decided to legalize it. Like Nigeria, Russia government is preparing to legalize Bitcoin too. This kind of actions will make cryptocurrencies stronger than before.

On one hand, this news brings a feeling of certainty on the position of cryptocurrency. For a number of years now, the legal stance of Bitcoin has been debated in Nigeria and for most of the part, the government was leaning towards making it illegal, with frequent stern warnings at citizens to steer clear from it - So, it's a positive as crypto enthusiasts know the legal position.

Having read through the thread, I agree with the majority opinion, there are positives and downsides to the ruling. The obvious advantage is that it could have been the worse case scenario (crypto being illegal), there would also be less ICO, IEO and STO scams.
Regulation however comes with its fair share of disadvantages;

• If the sector is handled too stringently, growth would be limited i.e, too much regulatory paperworks would frustrate developers.
• Investors could create a false sense of security and begin to scrutinize projects less with the believe that scams would not filter through.
• There is the risk of user data being handed over to government agencies on request as regulatory laws would make it difficult for platforms to reject.
• There's also the issue of wrong classification. The article read that - (paraphrasing) "All cryptocurrencies are considered securities, until proven otherwise", but the description of securities already proves Bitcoin otherwise:
There is of course no issuer or sponsor to challenge that position for Bitcoin.

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We would just have to wait and see how the crypto market reacts...

The news above is true, I telegram verified with a few friends from Nigeria that crypto and bitcoin regulations are in place. My friend can pay my monthly internet costs with Bitcoin, which is great.
Cryptocurrency related projects are sure, it can be said that the Nigerian market is quite potential. This is also an experiment with cryptocurrencies in a country like Nigeria. Then the effect spread very quickly, just about 10 years later, I am confident that cryptocurrencies will legalize all over Africa, then the whole world.

If i am not mistaken You are from Nigeria @Boss right?so with this Congratulation at last Your Country are open in Legalization of Cryptos specially Bitcoin?

ICO must be regulated in My opinion because there are really Tons of Victims from this so having this regulated then the Government has a power over them.
and also this is for the safety of Both investors and ICO company having them overlooked in some cases.

I don't think the Nigerian SEC clasiffies bitcoin as a security just like what this topic suggests.

The current ruling needs further clarifications but I can't find anything that suggests it is. The description of securities doesn't match any of bitcoin's features.
- Investing in it doesn't promise any future profits like interest or dividends
- Owning btc doesn't represent ownership of any physical assets


What I read was that crypto assets like bitcoin are classified as commodities and not securities. They are almost the same but still different.
Precious metals are classified as commodities and they are mined just like bitcoin. They're value also depends on the market demand and supply (just like bitcoin).
- https://sec.gov.ng/statement-on-digital-assets-and-their-classification-and-treatment/ 

By legalizing and regulating Bitcoin in Nigeria this is good news, hopefully it can be followed by other African countries.
With these developments, Nigeria's economy should be a little better off. Especially based on articles I read on the internet,
Nigeria is one of the most populous countries interested in cryptocurrency. And this good news should be able to increase
Bitcoin adoption in Nigeria, Also reducing the number of scams in Nigeria related to cryptocurrency due to government regulations.

Applying the law will protect the majority of crypto users but at the same time may also incur some new taxes in this country related to crypto.
Nigeria is an active country in using Crypto despite previous government bans. This country's signal can help them develop cryptocurrency into the national currency in the future.

The strength of the community was so terrible, late last year, despite the government ban, Nigerians continued to use bitcoin. Bitcoin topped Google's search page in this country, it seems the government has been subdued by the will of the people. In the future, there may be many countries like Nigeria whose governments have to accept cryptocurrencies because the demand of the people is so high.

Bitcoin search rates in countries on google countries
https://twitter.com/BinanceResearch/status/1177123438277754881

I could see a pressure on the part of the government which i think shouldn't be in this regard. Having a failed state/economy called for urgent steps to revitalize the country economy but this is not a way out. They (the government) want to ensure the naira measures up among other currencies, could this be a way out?. They told us not to associate and then want to take full control: they're planing something big for the commoners. The word 'traders' include me and you even OP himself, the government have now succeeded the continuity exploitation of her citizens. Our freedom is astake!.

Edit:
Kindly read this tweet: barely few days of acceptance.

https://twitter.com/connectwithtola/status/1306302283970473986?s=19


Get ready because many cryptocurrency platforms without much financial energy will fold up, the executives orders will start flowing from oga at de top to small small platforms.

Also note: fraudulent activities in the government will take an increase; there's no much hope as I presume.


Get ready for double taxation!. :'(

Glad to see that Bitcoin is finally being recognized as something other than a "speculative instrument."

What we really need, however, is to see Bitcoin recognized as currency. I think this will likely happen first in a country with a failing national currency, like Venezuela or Cuba, but it wouldn't surprise me if a more economically developed country like Switzerland or Sweden comes out and says it first.

Once we can start paying taxes in BTC, that's when you know we've made it.

I can't say I'm surprised that SEC finally gives Bitcoin the nod. Over the last couple of years, Bitcoin has been one of the hottest topics discussed both on and off social media in Nigeria. While I'm glad that I can now trash the plan about keeping my crypto activities (transactions, commitment), I'm a bit concerned about how this could impact usage of cryptocurrencies in the country.

Some advantages :
- Now companies, firms, and stores can integrate cryptocurrencies as payment methods.
- We can now make transactions without looking over our shoulders like having our accounts flagged for illegal transactions / transfers which is a win for the Nigerian crypto community (traders, investors, businesses utilizing crypto)
- More indigenous crypto startups (further job creation).

However, I have some concerns: Stamp duties, taxes and other bank charges next?


Now that government has ruled crypto as legal, that means we can freely use our accounts to make crypto transactions without restrictions, issues or getting flagged. This means the Nigerian crypto community will be heavily regulated and monitored (our bank accounts too) and this goes against what Bitcoin was originally created for. In addition to stamp duties and other unreasonable bank charges, we would start getting  taxed on every crypto transaction. With the rate of unemployment in the country, a lot of people turned to crypto gto find means of survival so this could be the government trying to milk people of their earnings  while acting as though they're the good guys.

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If there's one thing I've learnt is never to trust the government. This might seem like a bitter-sweet experience moving forward but let's see.

Having to experience this personally I can tell you we the citizen have lost the trust we had in the government system. Our desires to search for other means of surviving lead us to the industry and there's nothing the government can do about it to discourage us from engaging in the industry. If they were to ban cryptocurrencies, I'm very positive majority would had found a way to still keep their investment portfolio going either by using VPN to access the exchange or try some other means.

The government before now tried putting fear into her citizens by threatening to punish any offender found patronizing the industry but that didn't stop the enthusiast like myself and others from actively participating in the industry. First they used the banks but later withdraw since there was no way they could differential crypto related transacion from non crypto related ones as the citizen turned to patronized peer2peer exchanging to stay under the radar instead of using centralized exchanges that can leak our information to the authority.

On a general scales, the government has no other option but to adhere to the demand of the people. We have been fighting for the industry to be recognized and register so scamming activity could be reduced as that's one of the disadvantage that's chasing away noobs (average Nigerians) from joining the industry in their numbers currently.

The truth is that fighting against cryptocurrencies or blockchain generally in Nigeria can't help the economy, as we have known them to have the highest economy in Africa. I was so happy when I read the online, this is a good news ever. This decision will have a good impact on the economy and as well protect crypto users, Users will be free to do any transactions.

However, my major fear for Nigerian is that they won't misused this opportunity, and their government won't be selfish about this new technology.

I think this is a welcome development in Nigeria and I would say that African nations should follow that Nigeria has set up here. Specially the field of scams, Africa has been targeted by these criminal group so people should be aware of what crypto and what it can bring to them.

There is a report by Chainalysis: https://go.chainalysis.com/rs/503-FAP-074/images/2020-Geography-of-Crypto.pdf. And it's interesting that it has grown tremendously in the last 3 years and billions of dollars are now being transmitted, moved across that continent and somewhat a crypto regulation should be in place.

First of all, about the issue of scam, regulation of cryptocurrencies  in Nigeria can help to certain extent but people will still be scammed. People are gotten scammed because of greediness and mostly because they have no knowledge about what scam is all about. Regulation of cryptocurrencies  in Nigeria does not mean some people will not still visit scam sites and pay bitcoin into scammers bitcoin account, it does not mean someone will not use his or her crypto wallet device to browse online the way he likes and be infected with malware that can totally compromise the wallet. About scam, we need to fully have real understanding about scam in order to avoid it. That is why being in a forum like bitcointalk will really be helpful. Scammers are beyond government regulations, but like the OP implied,  scam activities will certainly still reduce.

We should expect that. Especially, if someone is suspected to have a criminal activities, such information can really help them. But, normally, this does not really apply to people that are professional and know a lot about cryptocurrencies. Like me, I hate kyc or any other verification, and I can not do it. Someone can easily trade on many exchanges without any kyc and also operate his wallet without any kyc. But, most people will not know all these but only even thinking kyc is good.

Although, Imo, this is a good move by the Nigeria SEC, even this can lead to increase in the rate of crypto adoption in Nigeria. But that does not  still affect or compromise the privacy of crypto experts in the country.

Yes we need to be careful about our cryptocurrency activities because once scammed, you might not get help. Therefore, being vigilant is important. Some KYC required are not really genuine, some are to use the information provided for improper activities. I usually try to investigate KYC requirement because I'm not comfortable with such too.

Now, SEC made a good decision in regulating ICOs and other crypto related projects. It's a great job that Nigeria  made a good step in making sure that scammers will not find a way to trick people.

Last April (https://nairametrics.com/2020/04/28/dear-nigerians-beware-of-bitcoin-fraudsters/), they made a warning about bitcoin fraudsters. They realized that they have to make a step to fight btc fraudsters. In line with this, instead of prohiting any investors to make a good project, submitting it to SEC and thorough examining it will help them determine whether it is a good and legit one.

Every year, the number of countries that accept bitcoin will increase. This is unavoidable.

Thank God consideration is given to Bitcoin at least to be regulated rather than placing a ban on it and making it illegal. Imagine how many bank accounts that will be frozen if it's termed illegal and how people will be victims of circumstances. Especially those who don't know anything about Bitcoin rather their Bank accounts were used to either purchase Bitcoin or used as and exchange medium to fund Bitcoin wallets or other crypto currency wallets.

Come to think about the bank accounts of those big business men who buy and pay with crypto currency and also sell and receive money in form of crypto currency. What will happen to them if accounts are to be freezed because Bitcoin and other crypto currency are made illegal by Nigerian Government. Abeg let them leave crypto currency alone ooo this thing is helping our life.

From what I have known, Bitcoin wasn’t illegal in Nigeria at the first place. I can remember a few years back someone posted a news about some cryptocurrency exchanges that launched their services in Nigeria. I remember for sure that Luno exchange has been fully functioning in Nigeria for years now, so how does that make Bitcoin illegal?

Maybe there was no rules set in place as of then, maybe it was just among those countries that had no rules , where it was neither regarded as legal or illegal and corrupt law enforcement will extort you wrongly. By the way, before this your news there was also a news of a Bitcoin ATM that launched in Nigeria; a BTC ATM won’t be launched in a place where it’s illegal.

First Congratulations to Nigerian People specially those Bitcoin and Crypto Enthusiast and of course investors.
because they are the one who will benefit more from this.
What you are pointing is from years back so this maybe a different thing,because the news comes just recently and not from years later.
You are thinking a Lots of Maybe meaning you don't even sure on what you are telling here.

You have forgotten that most of these cryptocurrency services where not  home service and most of them where be used by the government for money laundry. Bitcoin not be made illegal or legal in Nigeria in the past was as a result of the advantage the executives arms of government enjoyed(past and present). If Luno, Binance among other cryptocurrency start-up businesses be granted forensic audit you will be surprise what your government has done with them in terms of money laundry: 'so, how can a corrupt government make Bitcoin illegal, when using the same route for money laundry?. And when they discovered citizens had moved into Cryptocurrency, they were left with nothing to hide than make it legal to be regulated.
Some groups took advantage of this to robbed citizens off their sincere money earned from the internet. Between the years it wasn't illegal or legal, Bank accounts closure or tags was on a rise, and enforcement agency made their cut from legitimate owners of internet wealth and tagged them 'Yahoo Boys'. Bitcoin ATM machine be launched should explaine better than me. The same ring of money launders did that, and when they discovered me and you are into it too; it was time to regulate it hence be made legal to make it not business as usual.

Good news but from what I can see, institutions need to comply with the customer data sharing with the government. It is a conundrum for the people as the government needs to impose unfavorable condition. I hope that there will be a further development regarding this topic because in my country, the financial institutions and the government does not prioritize it.

According to history, Nigeria government are always at lost when getting into regulating anything. Most time they waste unnecessary time and resources fighting things that are not required. Advent of bitcoin has keep the youth busy and open more opportunity more than what Nigerian government has even created for the past 5 years. A lot of unemployed youths are becoming self employed by trading and exchanging coin locally. Most time, when the government talks about regulating any part of economy, it is most likely they see it rivalry and envious of how people are living independently. Nigerian government is a confused embodiment. Addressing the issue of scam, I am sure you know this is a global thing. No matter how sustainable things are, some element will always use that as a means of scamming people. In Nigeria today, a lot of people are receiving message and calls for scammers telling them that their bank account is having issue thereby requesting for account details in order to steal their funds.

this seems like a big defeat for the Nigerian gangsterment, because there would be no need to take these "legalization" steps if people weren't widely ignoring the previous legal status, lol


The Nigerian people won, they legalized Bitcoin, not the government. This is quite typical of these crooks in power: if everyone just ignores what they say, they have no choice except to have a miraculous about-turn on the policy, so that they do not appear weak or useless

It is funny how things shifted over there. While it was a crime to just even mention bitcoin, google searches for it always told the truth.
On a side note, I agree with OP and his doubts. To establish a sort of legal framework is one thing, how that will be put into practice will be quite another.

At some extent, every one will gradually approve bitcoin and other cyrpto currency, that for sure because it has really made a huge impact in the market and the world at large..
In Nigeria ,it was just a matter of time before they joined the crypto movement,
But even before the acceptance of bitcoin, they were at list ten stores that accepts bitcoin in Nigeria
Source: .https://www.nigeriabitcoincommunity.com/nigeria-bitcoin-stores/
   It really a great move by the Nigeria government.

If they get it in depth of bitcoin or crypto, the more they will be obliging with this innovation. Indeed in the event that they perused all the articles relating to bitcoin, on the off chance that they will not attempt it to begin with hand, they will not get it the genuine benefits brought by cryptocurrency. So having bitcoin as lawful in Nigeria could be a exceptionally welcome advance. So these lawmakers can straightforwardly attempt managing with bitcoin moreover, and see the great side and common people will get benefit from the crypto.