SEC changes direction, ask crypto firms to re-register under the new regime

[Odohu]

The Nigerian Security and Exchange Commission (SEC) have taken a new direction in cryptocurrency which is opposite to their outright condemnation and animosity that lead to the crackdown on exchanges and other crypto related businesses. This is as a result of the advice by IMF, which simply shows that our government can benefit more from a regulated cryptocurrency than an outright ban(which might likely not be possible). Consequently,  the SEC have issued a 30-day deadline for all crypto firms to register their businesses in their website¹. This might set the stage for full regulation of cryptocurrency.

However, given the peculiarity of our country, there are still many things that should be a concern to many regarding the modus operandi of this new approach and how effective it will be. Some of them include:

• Taxation: Can Nigeria effectively implement cryptocurrency taxation? Won't there be loopholes that will lead to unprecedented tax evasion?
• End to conspiracy: will this new approach bring an end to the conspiracy that cryptocurrency and exchanges are the reason our Naira exchange rate is terrible?
• Crypto adoption: How deep will this new policy push crypto adoption in Nigeria since we know that the potential is there already?

Let me see what other think about this new move.

[1] https://cryptoslate.com/nigeria-issues-30-day-deadline-for-crypto-firms-to-re-register-under-new-regime/

[Charles-Tim]

This people like to disappoint us. Is it IMF that should advice them? They supposed to know this. I do not also like this new SEC chairman. I do not expect IMF to advice him of his incompetence. He supposed know this. We that are not even with them know this as it is as simple as ABC thing about regulations.

There will definitely be tax evasion. But it is better to tax and earn huge amount of money than not taxing crypto companies and users at all.

If they will not continue to disappoint us, that is why they are the regulators. They know what to do so that they can not blame users of crypto exchange manipulation.

The SEC likes it or not, Nigerians knows their fiat (naira) manipulation as it is depreciating significantly and they prefer bitcoin and US dollar pegged stable coins. They also see it as investment and not just a hedge against inflation only.

[Marykeller]

Chai..This our present government no be am atal. Na this kind thing them for do at the initial than having most crypto exchanges that trade on naira peer to peer to stop, and consider to have a new registration with them than  the displayed drama say the naira trade on exchanges na em be the main cause of naira devalue to dollar.

Anyway, I no blame them cos this na the kind thing wey you go see from government wey no prepare to rule the country accept to create tax upon tax for every private business wey d exists in the country.

[Wiwo]

I guess every regime have their own method and approach to things and this time the Nigeria government have taken what we call sticks and carrot 🥕 approach towards cryptocurrency adoption in Nigeria,  and this approach have made the government to lose alot of revenue from citizens participation in the cryptocurrency Industry.

I guess their could have registered and be the first country in Africa to registered digital currency exchange, like Binance,  now look at how Binance escape with everything due to bad approach,  they could have not arrested the two Binance executives,  what the government could have done is to collaborate with the exchange that way their can monitor citizens activities on Binance,  to track the so called bad actor's in the cryptocurrency space.

[Nwada001]

Another thing of concern way you suppose also are add for the list nah if them fit stop to blame and accuse crypto exchange as means way people they carry launder money because nah one of the reason way make them start to fight crypto exchange them no be only the Naira devaluation trigger them to fight Binance, dem also been say billions of naira been follow Binance enter the dark way them no fit trace.

Nigeria government no go ever fit disappoint us them they always try to show the world say them no the capable to handle the kind matter way they come their hand, from the beginning them suppose know say crypto nah one thing way them no fit stop for the country so best way them for do since before people sort out alternative way to survive even without their approval nah to make am legal and put working policy way crypto firm them for they abide from their first appearance way them start to render service give the country citizens.

Make we they watch nah see how many exchange way they active now way go rush go do their registration even if them no they offer P2P to Nigerians again, and for the record aside from the P2P side exchanges still they filled with Nigerians traders way they use am fine their daily bread.

[Cryptomultiplier]

The Nigerian Security and Exchange Commission (SEC) have taken a new direction in cryptocurrency which is opposite to their outright condemnation and animosity that lead to the crackdown on exchanges and other crypto related businesses. This is as a result of the advice by IMF, which simply shows that our government can benefit more from a regulated cryptocurrency than an outright ban(which might likely not be possible). Consequently,  the SEC have issued a 30-day deadline for all crypto firms to register their businesses in their website¹. This might set the stage for full regulation of cryptocurrency.

However, given the peculiarity of our country, there are still many things that should be a concern to many regarding the modus operandi of this new approach and how effective it will be. Some of them include:

• Taxation: Can Nigeria effectively implement cryptocurrency taxation? Won't there be loopholes that will lead to unprecedented tax evasion?
• End to conspiracy: will this new approach bring an end to the conspiracy that cryptocurrency and exchanges are the reason our Naira exchange rate is terrible?
• Crypto adoption: How deep will this new policy push drypto adoption in Nigeria since we know that the potential is there already?

Let me see what other think about this new move.

[1] https://cryptoslate.com/nigeria-issues-30-day-deadline-for-crypto-firms-to-re-register-under-new-regime/

If the SEC considers going this way, it's a right step in the right direction and we all know that it is the way the Binance saga is being treated, in that it is affecting crypto businesses and exchanges in the country that makes them want to enforce these policies that is ultimately leading to regulation and monitoring of cryptocurrency users and its activities in the country.

The government will also have been able to achieve its aim of benefits from taxes, both from the users and from the exchanges and by all standard, the advice the IMF gave, if heeded and followed through, will make this countries economy better will boost the macroeconomics too.

[Antotena]

When I eventually have a crypto business in Nigeria, I wouldn't bother investing in Nigeria even though we have the highest number of crypto users here, not because the business wouldn't thrive well but unclear policy will make you fold quickly as your running cost and expenditures would make you lose interest in running the business.

Do you know that the Security exchange commission of Nigeria mandate crypto exchange registration from ₦30M to ₦150M and proceedings from ₦300k to ₦1M, the registration fee has increased by 5 times when the inflation hasn't 5x since the new government entered office, now tell me how small exchanges would are going to survive with such exorbitant prices. Nigeria is not a safe place for business.

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However, given the peculiarity of our country, there are still many things that should be a concern to many regarding the modus operandi of this new approach and how effective it will be. Some of them include:

• Taxation: Can Nigeria effectively implement cryptocurrency taxation? Won't there be loopholes that will lead to unprecedented tax evasion?

I have never seeing anyone as confused with this current government, despite this government been a continuation of the previous government, they change policy many times without numbers. Crypto legality has never for once be clear, and all of a sudden they want tax from crypto firm, why do you want tax from something you don't like. As per loophole, this is not a new thing, people will always look for alternatives.

• End to conspiracy: will this new approach bring an end to the conspiracy that cryptocurrency and exchanges are the reason our Naira exchange rate is terrible?
• Crypto adoption: How deep will this new policy push drypto adoption in Nigeria since we know that the potential is there already?

Crypto exchange were never the reason for Naira manipulation, it's  a reaction from the monstrous system they build and it's what was affecting them and they start chasing shadows for nothing.

Adoption will remain the same, most of crypto firm in Nigeria are no longer in operation most especially the local firms. Patricia use to be the biggest among exchange with crypto adoption and they have fold up due to hack/scam that happen years back.

Let me see what other think about this new move.

[1] https://cryptoslate.com/nigeria-issues-30-day-deadline-for-crypto-firms-to-re-register-under-new-regime/

Now look at this headline, who in right sense will give a 30 days deadline to comply? This is pure madness.

[CryptopreneurBrainboss]

• Taxation: Can Nigeria effectively implement cryptocurrency taxation? Won't there be loopholes that will lead to unprecedented tax evasion?
• End to conspiracy: will this new approach bring an end to the conspiracy that cryptocurrency and exchanges are the reason our Naira exchange rate is terrible?
• Crypto adoption: How deep will this new policy push drypto adoption in Nigeria since we know that the potential is there already?

Nigerian isn't perfect but yes they can implement crypto taxation, one thing be say when Nigeria ready to work e dey work. E just belike when police for the country ready to work dem no dey forces dem. E takes just employing the services of someone that's qualified and not putting politics into it. If the politics go still dey but dem go reduce am small and e go work because the taxation fit start from the CEX exchanges wey dey licence to operate for the country and either when you dey deposit or withdraw, your taxes has already been subtracted and everything go just work fine.

There was no conspiracy, crypto was actually contributing  but why that was possible was because of other sectors not working as they should be because a country wey economy dey go well, all this other things na small challenge. It only became a problem because the country no dey work, everything dey scatter and the tackle on P2P and forex has stabilized the Naira somehow but na just short term solution because no be there the problem start but na the failed economy.

Whether e happen oh or e no happen, e no go stop the adoption of crypto for the country, but no doubt if the government welcomed crypto, the adoption go increase more and e go benefit everybody because companies go come inside the country wey based in crypto and we fit launch our own business and other startup go dey run their own business. Everything go just aline wey be say the country go benefit pass as everything go dey add to the economy in one way or other.

[Felicity_Tide]

Nigerian isn't perfect but yes they can implement crypto taxation, one thing be say when Nigeria ready to work e dey work.

If the politics go still dey but dem  ::)go reduce am small and e go work because the taxation fit start from the CEX exchanges wey dey licence to operate for the country and either when you dey deposit or withdraw, your taxes has already been subtracted and everything go just work fine.

I don't think the implementation of taxation will be a problem at all to the government, abi dem no do am for telecommunication too?. The thing is, as time goes on, we will start observing some misue, or should I say maltreatment, as the government go dey increase tax dey go. As money dey crypto, dem go see am as avenue to increase task at regular interval compared to other sectors.

Whether e happen oh or e no happen, e no go stop the adoption of crypto for the country, but no doubt if the government welcomed crypto, the adoption go increase more and e go benefit everybody because companies go come inside the country wey based in crypto and we fit launch our own business and other startup go dey run their own business. Everything go just aline wey be say the country go benefit pass as everything go dey add to the economy in one way or other.

This was a reply I made in post, as I sited how crypto adoption can be more beneficial, rather than the taxation idea the government are after. I even made an example with a country that has embarrassed this part and are currently ahead of us in this area.

Take El Salvador for example, we've witnessed the country's enthusiasm towards Bitcoin and how they've implemented strategies to promote its adoption, such as using geothermal energy for mining, introducing educational programs in schools, declaring it a legal tender, etc. El Salvador is not just aiming to make profit from Bitcoin taxation alone, but also from the things they've put on ground such as mining programs and others.

So, what I am trying to say is that if an anti-Bitcoin government decides to legalize Bitcoin solely for tax purposes, they should integrate it fully into the country's system, just as what El Salvador has done. At least, more tax revenue can go to their selfish pocket.

[DiMarxist]

Nigeria SEC is in confused state. This is what they would have done since. They would have asked the exchange to follow the local rules and ay all the dues then allow them to operate instead they banned them. And now calling them to register under the new government. Confused people.

[Lida93]

This talk dey laughable say na IMF go come the advise our government on plenty economic matters before them go come decide what to do. Regulations nah part of government responsibilities and as enlighten people in governance we been the think say nah this sort of move them for done take right from the beginning way their eyes enter into cryptocurrency and exchanges activities for we country. On a normal day me I no get joy with all this IMF them cause nah them be part of the root way fall this our economy right from time immemorial but that one nah talk for another day shaa.

For tax invasion, that one no dey alien about our system because the government no really get strong mechanism to trap every available loose ends wey go lead to tax invasion even for within the physical domestic business hubs wey sit-down inside the country how much more say na cryptocurrency matter. Addition to the fact say, many of we Nigerians no sabi pay tax. Anyhow, make we see whether this new move go get head make it no come be like those other news we done hear before now wey no come work anything potent.

[Hewlet]

• Taxation: Can Nigeria effectively implement cryptocurrency taxation? Won't there be loopholes that will lead to unprecedented tax evasion?
• End to conspiracy: will this new approach bring an end to the conspiracy that cryptocurrency and exchanges are the reason our Naira exchange rate is terrible?
• Crypto adoption: How deep will this new policy push drypto adoption in Nigeria since we know that the potential is there already?

Nigerian isn't perfect but yes they can implement crypto taxation, one thing be say when Nigeria ready to work e dey work. E just belike when police for the country ready to work dem no dey forces dem. E takes just employing the services of someone that's qualified and not putting politics into it. If the politics go still dey but dem go reduce am small and e go work because the taxation fit start from the CEX exchanges wey dey licence to operate for the country and either when you dey deposit or withdraw, your taxes has already been subtracted and everything go just work fine.

normally as long as it's going to benefit them, e no go be big issue for them to implement and tax any crypto exchange when de licensed to operate for Nigeria. The only time when we de face issue with regards to implementation of a policy in Nigeria na when it relates to any spending of any sort from the angle of the government. As long as say na them go benefit from the taxation, e go shoke you how smoothly the taxation go de. Like wetin you don talk, na just simple thing to do, them fit decide to fix a certain charge when users go de entitled to paying while carrying out a crypto transaction and that settles it all. E de always be deficult thing to do when you're require to pay an amount with your hands. If the tax is just deducted from your account at the point of making any transaction like what's obtainable with banks and other financial systems, it will work so smoothly that users wouldn't know that they are even paying so much at the end of the month for carrying out a given amount of transaction.

My issue na why them go wait for IMF to yarn them talk before taking actions and working out ways to regulate crypto in the country knowing fully well that as it stands, they can't totally stop people from carrying out crypto transaction in the country. Without waiting for an external body to lecture them on what to do, the SEC is supposed to have held a meeting where they will have real discussion on cryptocurrency in Nigeria and the need to live with it or the possibility of doing away with it. Thank God say at the end of the day, we go always win and this na good development sha.

[sotelorene]

Nigeria Government dey very biased and secondly dey no dey fight waiting no go give them money or something wey dey no go fit use embezzle money. I strongly believe that, the Government is capable of manipulating anything that will make it look like the cryptocurrency and exchanges are the reason for our naira exchange rate being terrible especially if they are benefiting handsomely from it. Moreover, make we just see this one as welcome development because some people go dey at ease now to carry on with their crypto things and e go also make people wey been dey fear because of those Government yeye policy to join crypto now.

[Sonia_123]

It is obvious that Nigeria  leaders in power don't know how to govern the country, it is better for them to hand over to those who knows how to rule ,so that we can know where we are heading to in our country, what they would have done earlier in other to generate more fund and regulate crypto transaction in Nigeria, the didn't do it, now they have turned themselves around again to order registration of cryptocurrency exchanges and digital asset traders,that is why we are growing in  poverty not riches, because Nigeria government will not use the available opportunity,they will throw it away by now they would have known how much they would have gotten from crypto traders to support the economic challenge we are facing.

[SmartGold01]

You know Binance is like an eye opener to our government the issues between us government and binance give rise to our country on how to start tackling cryptocurrency exchanges and this same move is what our country is taking bold step on so whatever that may likely happened currently is a result of copying from the next people, and of course I don't this implementation can be maintained by our government because I am some slack and deficiencies in them, if they were clever enough they could hard followed this exchange with care and wisdom without most of them delisting p2p, and now it could be very hard for them come register seeing that most people had already left them to other exchange. If these same can help binance then I think they don't mind in as much they already gained popularity in Nigeria they don't mind doing that.

[asarfiar]

It is no secret that the Nigerian government's strong stance towards various cryptocurrency entities is no secret. Governments consider cryptocurrencies a risky move to alienate their generation of visionary technology and savvy entrepreneurs and cryptocurrency investors, undermining their future generational standing. The Nigerian  is reportedly stepping up its cryptocurrency crackdown, with a proposed ban on peer-to-peer trading. But I guess the cryptocurrency market is expected to continue to grow in the coming years especially Bitcoin (BTC). It is also expected that cryptocurrencies will foster increasing adoption and growth in emerging and rapidly developing markets.

[Coyster]

• Taxation: Can Nigeria effectively implement cryptocurrency taxation? Won't there be loopholes that will lead to unprecedented tax evasion?

Make dem start am first, loopholes fit dey based on say people no go accurately declare their gains from crypto, but the government go dey collect the tax through crypto exchanges and other types of crypto firms.

• Crypto adoption: How deep will this new policy push crypto adoption in Nigeria since we know that the potential is there already?

Crypto is already widely adopted in Naija. But na true, e go get some new people wey go dey allured to crypto if we don get regulatory framework wey dey clear, so yes, e fit push adoption.

[letteredhub]

• Taxation: Can Nigeria effectively implement cryptocurrency taxation? Won't there be loopholes that will lead to unprecedented tax evasion?

Make dem start am first, loopholes fit dey based on say people no go accurately declare their gains from crypto, but the government go dey collect the tax through crypto exchanges and other types of crypto firms.
 

Since na the exchange go hep them the remit from each trade traders make it no go dey possible for people to outsmart am, if say na the government the run am direct na there accuracy for be an issue

• Crypto adoption: How deep will this new policy push crypto adoption in Nigeria since we know that the potential is there already?

Crypto is already widely adopted in Naija. But na true, e go get some new people wey go dey allured to crypto if we don get regulatory framework wey dey clear, so yes, e fit push adoption.

With how I dey see things from my own direction I never get confidence say this current administration them really wan make better policies to asiot crypto for the country. I dey skeptical on their stands because for government way wan adopt çrypto still na them dey restrict Fintech mobile banks from allowing their customers to use their account do any crypto related transactions. Na make I say k-leg dey this their pattern of adoption, na just that tax money na dey their eye to collect from the exchanges.

[Cryptoprincess101]

• Taxation: Can Nigeria effectively implement cryptocurrency taxation? Won't there be loopholes that will lead to unprecedented tax evasion?

Already we all know that there will be irregular taxation if the government decides to tax crypto enthusiasts because there must surely be loopholes since some caliber of people will want to evade taxation.

• End to conspiracy: will this new approach bring an end to the conspiracy that cryptocurrency and exchanges are the reason our Naira exchange rate is terrible?

Maybe it can since they have channeled their blame game on exchanges so they will be the one's to regulate the exchange rate to trade cryptos to Fiat so they won't like to see a collision in the process because if there is, they will have a lot of questions to answer because we all know that the major cause of devaluation is trade inbalances like when importation is higher than exportation which means that more values will be given to those countries currency we import goods from more than the one we export and most of our products here are not up to international standards which makes it difficult to export them to other countries.

• Crypto adoption: How deep will this new policy push crypto adoption in Nigeria since we know that the potential is there already?

All the government wants is to be involved in crypto transactions so if they achieve their aim I don't think it will stop most people from trusting cryptocurrency even though it will look the main aim which is decentralization may seem to have been conquered. Nigerians are so deep in cryptocurrency so regulation or no regulations, we move[/list]

[AVE5]

Why the sudden 30 days ultimatum for the exchange to register on the SECs administrated site when there was no earlier inform to keep the various exchanges warming in anticipation? Funny. The Nigerian government just think they can whisper orders on every organizations just because they're affiliating with their jurisdictions.
Since our government has always claimed to be smart even when they're not, they shouldn't forget that this exchanges platforms do also operate in a higher smart note so, for Nigerian government to reverse the restrictions of this international exchange platforms, that means they may have embarked on a strategy to regulate the platforms.
We just hope to keep enjoying the decentralized of crypto transactions using the centralized exchanges with the governments anonymous motives of recalling back the restricted exchanges after all these while.