Topic: Crypto market too big to ignore, says Nigeria SEC (Read 345 times)

I don't believe Binance won't be oppressed by the Nigerian government political oppression cause this is not the first time they have witnessed such thing but I expect Cz to submit to their rules and regulation if they later demand for tax payment by cryptocurrency user and how they use the tax is none of his concern.

I just hope the foreign companies that offer services of trade in the country like Binance dont get too much into the politicking of oppression that the Government is playing. I was expecting a demand for tax payment but at the moment the deregulation has not mentioned that, this is a country where every tax paying countrymen are not happy with what Government does or did not with it. It only looks like siphoning the populace to enrich their pockets.

Not sure if it's better to be happy or sad about having a government that allows you to use cryptocurrencies if one of the main reasons they allow it is 'cause they can have control over it, lol. But I think the number of people going off-grid and using BTC the P2P way is way smaller than those obeying the laws anyway. Whether it's a ban or strict regulations, I still think the balance is in their favor.

Smaller countries don't have the tech and experts (or the salaries for them) that big countries do though. If the US can afford paying big money for intelligent algorithms that automatically extract data from crypto blocks, smaller countries would rather just become hostile against BTC instead.

As far as I know, cryptocurrency is already banned in Nigeria since beginning of February 2021 as per the circular issued by NCB on 7 February 2021. Correct me if I am wrong here!

With such high dollars exchange rate, we're buying at least 27% higher than what the international exchanges are selling providing we can get dollars with in the official CBN dollars exchange rate although that's not the case as neither the banks or black market are selling at the official price, they have their profits inputted and it skyrocket the exchange rate.

In the wake of the recent ban on Nigerian banks' servicing of crypto exchanges, Bitcoin's price in the country has seemingly spun out of control.

In light of the above, are those numbers seemingly accurate? And if so, do people try to circumvent local exchanges, and try to use other international platforms for purchase?

I have made a little comment about this in a post above, we do not know where the data is gotten from, but according to p2p exchanges we are using in Nigeria, that data is not correct. We buy and sell Bitcoin just like the normal price, but you know in p2p market, there are many buyers and sellers with different prices, you will only see some with slightly higher prices and slightly lower prices as it is just on exchanges. Some news are not just right but wrong because I have not noticed this in Nigeria.

I'm not sure of it as well because in some other articles that I've read, they say that it's a 36% premium.

Earlier today, I read that Nigeria currently had a Premium on bitcoin of over 51% according to http://www.bitcoinpricemap.com/. Not sure exactly how they derive that information, nor if the information is accurate (theoretically derived from local exchanges) or subject to an idiosyncrasy which is unparalleled in other countries, but for whatever reason, bitcoin seems to be trading there at 83K$ right now, which is ballistic.

On accounts of frauds, P2P can be done over decentralized networks which would serve as escrows to protect both parties. I however doubt there is enough liquidity on such platforms to support large purchases. Although, centralized platforms also has P2P options which could suffice for much larger trades.

I totally love the Nigerian SEC stance towards cryptocurrency and I like the statement of "the world cannot be moving forward and we will be static" since the whole is changing to crypto for Nigeria to be among the most country with good crypto traffic the CBN previous ban will affect a lot of crypto user in Nigeria.
But I don't understand is their plan to regulate crypto which is not possible and they can only regulate exchange activities and the last I check 97% of all centralized crypto to fiat exchange offer KYC.

Also, because of fraud cases some people have heard about p2p, they prefer to use bank directly. Also, if big organizations will want to start dealing with bitcoin and other crypto assets, they will prefer bank deposit and withdrawal as the standard.

So, this has been cut-off. Yesterday, i bought some coins using p2p, there was no need to pay charges for sending fiat to exchange.

that's the problem with governments that do weird things about bitcoin that is against what the rest of the world is doing and against what people like. it forces people to go off the market and do more P2P trades that the government can not ever have any control over and worst of all is that they can never take back that control they lost in first place.
P2P trading is not as popular as going to a centralized exchange in countries that have accepted bitcoin and their government has more control over the market and what people do!

that's the problem with governments that do weird things about bitcoin that is against what the rest of the world is doing and against what people like. it forces people to go off the market and do more P2P trades that the government can not ever have any control over and worst of all is that they can never take back that control they lost in first place.
P2P trading is not as popular as going to a centralized exchange in countries that have accepted bitcoin and their government has more control over the market and what people do!

SEC are more in charge of crypto related matters, probably they might have been convincing CBN what they are getting wrongely. Like CBN saying cryptocurrencies trasactions are anonymous, is that true. CBN information on cryptocurrencies are almost wrong, in which the SEC have more information that are true which have been making them to embrace cryptocurrencies

In light of the above, are those numbers seemingly accurate? And if so, do people try to circumvent local exchanges, and try to use other international platforms for purchase?

As far as I know, cryptocurrency is already banned in Nigeria since beginning of February 2021 as per the circular issued by NCB on 7 February 2021. Correct me if I am wrong here! So it's really surprising that Nigerian SEC has issued such statement which is somewhat contradicting with the viewpoint of NCB. Not sure if SEC is planning to overrule the ban of NCB and want to suggest regulation instead.

so my question is would the government maintain their stance to allow crypto transactions even if binance refusing to use a Nigerian bank account like before ?

that's the problem with governments that do weird things about bitcoin that is against what the rest of the world is doing and against what people like. it forces people to go off the market and do more P2P trades that the government can not ever have any control over and worst of all is that they can never take back that control they lost in first place.
P2P trading is not as popular as going to a centralized exchange in countries that have accepted bitcoin and their government has more control over the market and what people do!

According to a report by Premium Times, both the SEC and the Central Bank of Nigeria will work collaboratively on devising a concrete regulatory framework for cryptos in Nigeria. Speaking at a virtual conference organized by the Association of Capital Market Academics of Nigeria in the capital, Abuja on Sunday, Agama remarked:

“Part of the desire of the SEC even in the future is to provide a regulatory framework that will take care of all these challenges that we have seen internationally and the entire world is grappling with in terms of cryptocurrency and digital assets. For us at SEC and capital market, it is something to look at, the world cannot be moving forward and we will be static, no.”

However, most crypto transactions are pseudonymous at best. Blockchain intelligence firms like CipherTrace and Chainalysis have created tools that allow for robust cryptocurrency forensic investigation.

Also, crypto exchanges in Nigeria were adhering to Know Your Customer best practices which included the bank verification number, or BVN, authentication. As part of the address during the ACMAN lecture, Amugo revealed that the CBN and SEC were working with other Federal agencies to develop a national regulatory approach to cryptos in Nigeria. During the event, several stakeholders called on regulators to pursue more nuanced laws rather than outright bans.