Legal experts believe Nigeria needs clear crypto guidelines

By: Henry Felix

September 10, 2022 5:33 AM

There has been a call for Nigerian authorities to reevaluate the country's crypto regulatory framework because the current rules do not reflect the situation on the ground. There is a growing demand for "clear-cut guidelines" for the cryptocurrency industry in Nigeria, according to legal experts.

The Nigerian People Keep Ignoring the CBN

In a recent two-day workshop in Nigeria, legal experts discussed the potential benefits of updating Nigeria's cryptocurrency regulatory guidelines. To paraphrase the experts, "Nigerians have largely ignored current regulations that seek to stifle trade or investment in crypto," so it's time for an upgrade.

Coinnewsafrica recently reported that Nigerians are using peer-to-peer trading platforms to avoid the CBN's ban on cryptocurrency trading and investment. In the first half of 2022 alone, Nigerians using the P2P cryptocurrency exchange Paxful reportedly transacted nearly $400 million. Moreover, a recent survey found that, of all people around the world, people living in this West African country are the most interested in cryptocurrencies.

Meanwhile, in comments published by The Guardian, legal experts argued that the influx of foreign investment into the sector bolsters the case for Nigeria's need for clear guidelines. An example of a risk that many crypto users face but that could be potentially minimized by putting guidelines in place is given in the report by one of the experts, Roger Geisler, a special agent in the Arizona Attorney General's Office. What he actually said was:

"It has come to light that the Google Play Store is home to a number of fake wallet apps that are merely clones of legitimate ones. When someone puts money into a wallet, it is promptly stolen and the wallet is left empty."

Success With Virtual Currency Income Generation

The head of Africa's Fintech Foundry (AFF), David Awe, also outlined the difficulties in establishing a regulatory framework for blockchain smart contracts. However, the report's cited experts all agree that lawyers need to check smart contracts for compliance with the standards.

Lawyers should find ways to profit from the cryptocurrency industry, according to Ikechukwu Uwant to, chairman of the Lagos branch of the Nigerian Bar Association (NBA).

Today, [cryptocurrency] is all the rage. In spite of widespread interest, few details have emerged regarding the applicable legal regulations. In what ways do digital assets present a security risk? "All of these things are money in the bank for lawyers," Uwant to is reported to have said.