Is Cryptocurrency Still Illegal In Nigeria?

Nigeria is the biggest crypto country in Africa, with the third-highest number of cryptocurrency traders worldwide. The majority of cryptocurrency transactions outside of the US are made in this nation. It has been estimated that 35% of Nigerians have traded cryptocurrencies in the past months.

Despite how encouraging these figures may be, the environment in Nigeria has been highly averse to cryptocurrencies and things related to them. Due to a serious threat to the nation’s financial system, the Central Bank of Nigeria ordered all commercial banks and lenders to cease all cryptocurrency-related transactions and operations last year.

Given that over 50 million people in Nigeria use cryptocurrencies, the country’s ban on them has a significant negative impact on the country’s youth. Many cryptocurrency trading platforms in the nation were shut down during this time. Numerous bank accounts that were suspected of dealing in cryptocurrencies, as well as their funds, were also closed.

Any bank transaction that references “crypto,” “bitcoin,” “P2P,” or any other crypto-related phrases will be locked away alongside the account starting today (as of August 18, 2022). (s).

The measures taken by the Nigerian Law Enforcement have been quite harsh for innocent youths who are just benefitting from the good cryptocurrency offers to anyone. Is cryptocurrency illegal in Nigeria? No, it isn’t, but it is unregulated.

What makes crypto illegal in Nigeria?
Is cryptocurrency illegal in Nigeria? What makes crypto illegal in Nigeria?

Yesterday August 17, 2022, The Economic and Financial Crimes Commission (EFCC) held a Twitter Space titled: “What Is Illegal In Cryptocurrency?”. Thousands of Nigerian youths took the podium to express their grief toward EFCC’s approach to cryptocurrency. In defense, EFCC communicated that cryptocurrency has been used over the years for Ponzi schemes and other financial frauds. They gave practical examples of how crypto has been used to support fraud in Nigeria.

EFCC was also accused of harassing innocent youths just because they may look fraudulent.  They also denied the allegation of harassment and mentioned that if anyone is being questioned and has proven innocent of his livelihood, he is a free man. But is he free indeed?

The answer to the question of whether Cryptocurrency will be accepted in Nigeria is still pending. Nigerians, in their vawulent manner, have abrupt insulted and accused EFCC of ignorance and foolishness. A user said, “How can you regulate cryptocurrency when you don’t understand the concept of  blockchain?”

Another user tweeted: “It is clear that you are stup*d. Have you finished arresting all the politicians who are publicly known for looting the country’s funds?”

Indeed, Nigerians have expressed their opinions on EFCC’s take on cryptocurrency, but do you think any positive change will be done?

It is disturbing how poorly cryptocurrency is treated in the country. As we join hands to curb cybercrimes, you should be mindful of your transactions, secure your funds and never involve in fraudulent acts! We are happy that the community has adopted mechanisms that allow every cryptocurrency transaction traceable to find a viable solution.

 

WELL! Don’t be sad. Check out this post to see how far Nigeria has gone in the crypto space.

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