Topic: SEC orders crypto firms to open office in Nigeria (Read 139 times)

OP you no post any link to the news, for people wey wan read the news from the source, na here e dey: https://cointelegraph.com/news/nigeria-sec-local-office-requirement-crypto-firms

There is a part in the news wey i no understand; i go quote am below:
I no sure say this rule too make sense oh, except they are looking to onboard only local VASP. The CEO of a global virtual asset service provider no go dey reside in Nigeria na. BTW, now wey the sec dey talk about onboarding VASP in Nigeria, does it mean that our government don dey friendly to crypto? The matter dey confusing oh.

OP, I commend you for putting this important information here. We must always accept that this aspect of crypto policy is very much favourable to Nigeria and Nigerians. I believe that this is a call for crypto adoption here in Nigeria because once this is fully implemented, the masses and organisations will begin to look into adopting crypto into various businesses based on the existing laws of the land.

However, I have read through and I must also commend other members who have made some valuable contributions added to what the OP has said here but I think we should look at the reality at hand now because that would give us some logical thought about the current situation of affairs as it relates to international crypto organisations coming to establish an office here in Nigeria.

The truth is what I think we should know and I ask this question, looking at what the Federal government did to Binance officials and held them in prison for a very long time, do you think other international crypto organisations would have the confidence to come to establish their various offices here in Nigeria. The federal government made a big mess of itself in the eyes of the international crypto community and it is already recorded and history would never lie about it. I would tell you this, it might likely be difficult for any of the crypto organisations to open an office in Nigeria other than the local crypto organisation because they would not want their officials to have that experience. I believe they would opt to pay tax just like Kucoin already is doing than have any further issues with the government and I think that is a good move by the Kucoin exchange. This is what should have been the topic of negotiation between Binance and the federal government but they failed to logically reason towards that direction.

Hopefully, other crypto organisations such as the exchange would follow the same steps just as Kucoin did to retain the Nigerian market because Nigeria is a big deal for them all and I also know the federal government would benefit from the tax paid by them. In this situation, the local crypto organisations are the entities to conveniently open an office here because it is their nation and even then some would still not open but would rather prefer to remain online just to avoid government brouhaha.

I agree with you OP in terms of crypto firms to open local offices here in Nigeria especially the centralized exchange companies. This move will help settle transaction issues that customers might experience locally, but what i seem to differ with you a little is about the regulation aspect by the Nigerian government you mentioned.

if the regulations is about the adminstrative process on how firms should operate in Nigeria on how to pay taxes, to register with CAC and to have their operational license to run their business then I will agree with you for them to follow those guidelines,  but I will technically disagree with you,  if the regulations will be on practical operations of how the cryptocurrency firms should run their business,  because it is a decentralized system and government cannot have a direct practical control of the activities that happen on the crypto space.

so to a large extent, their regular will certainly have a limit. so my question is, is the Nigerian government ready to embrace those limitations that comes with cryptocurrency regulations?

Well, you sound like Phoenix browser which bumps into your privacy with a very captivating topic and an entirely different content. leaving you slightly disappointed. I was happy seeing the topic and thinking the Nigerian government are fully back to their senses in fully recognizing crypto activities. Also, I noticed your no 2 and 5 are the same thing though, try avoiding such repetition next time. though they are great points.

Lets contribute

Crypto offices within the country can contribute also in other great ways like providing jobs for its citizens as the offices wouldn't run itself but would employ citizens to work with it.

Secondly, It can foster more adoption of crypto as more people would feel safer embracing crypto services from the company since they have a physical location, are licensed by the government and can be visited in case of issues and we know people prefer dealing with who they can see.

They also serve as a medium of revenue generation for the state of residence and the country as a whole as their tax would be beneficial to the Nigerian government.

It can also foster partnerships with local based industries, which would bring profits to the industries and help spread the crypto gospel faster.

Transactions can be cost-efficient as operating within the country can cut-off various cost implications and make crypto transactions more cost effective for the citizens of the country and gaining more trust and patronage in the process.

The SEC was so mute before and we only saw CBN giving people wrong information about cryptocurrencies in relation to naira manipulation. The SEC is the body that supposed to regulate crypto exchanges but they have been so illustrate about it until recently. So this is the work of the SEC.

Banks pay taxes. So how is crypto exchanges different from banks? The government need to focus on revenue but most importantly on their citizens coins protection.

Nigerian SEC does not have the power to order crypto firms to open offices in Nigeria. You sure say no be our government trying to do pass them self again? No be this gragra wey make our government rush go arrest Binance executives carry them go court and las las nothing come out? I no know when our government go settle down begin do this as e suppose be.

Instead of ordering crypto firms to open offices, why not create an enabling atmosphere that will motivate them to do so like Malta, Portugal and some other countries are doing that have lead to a rise in the number of companies opening offices in those countries. For now self, nobody fit trust our government because of policy inconsistency. Crypto firms are business and nobody go take him business gamble in a place like Naija where government fit wake up today and freeze the account of anybody, carry one accuse knack untop him head.

Our government should rather focus on redeeming their damaged reputation as it has to do with cryptocurrency rather than looking for a way of earning revenue from what they have worked against.

The OP should have shared the link from where he got this information from so that we will know the authenticity of the news, this is the first time that I'm hearing about it and I don't want to be misled if it is a fake news. I don't think that it is necessary for exchanges to have physical offices in Nigeria, since crypto users in Nigeria, can get every information they need and make any complaints on their platforms and they will be responded to. I don't think that they need to have any physical offices in the country for our government to tax them, the world has gone digital and sites don't need to have a physical presence in any country to continue doing their businesses there. Although physical offices will create Job opportunities for qualified Nigerians to get employments with the crypto firms and it will make people to have trust in cryptocurrency that it is a real business.

My brother, as I see this ur thread so, first of all, you surpose add link make we dy clear if this Intel dy legit, because as it stands now, we no dy sure if true true na wetin our sec for we country talk, and to me oo, I no see this news like any welcome development.

I say so because, I know the country I from, first and foremost them go say make them open office so that everything go dy transparent, tomorrow now, them go tell them to give them the kyc details of all their customers, and since their office dy in the country, e go dy easy for them to access our details, if the government use force, and once our government get hold of our details, that one go be different issue all together, because I know say the first thing Dem go wan do once them get hold of our details na to freeze our account,.

So my brother, you first need to understand say, as long as cryptocurrency and forex trading is concerned, our government don dy look for way to use stop am tey tey no be today, so opening and office in the country na a very bad disadvantage to cex and we the crypto and forex enthusiastic.

No be today way we realize say, our government for we Nigeria dey use trier and error dey do plenty things. Them go never really do better understudy of a project or proposal, jump into conclusion on what action to take and action it as them deem fit.
Where e go surprise you pass be say, another sector fit counter the whole thing later and the tori go be say, them no been dey aware meanwhile, them exists for the same country and na part and parcel of the same government.

No be lie say, this we government don go after Binance o, some of the officials even try to collect kola and die the matter but e later cast.

The thing be say, government dey fine where them kwa go follow chop and if this regulation of cryptocurrency firms go help soften their mind, e no bad o. Na say make person way dey use centralized services of this nature dey wise too.

Anybody that think that this is a good and welcomed development is obviously in the wrong. Let's not be too quick to forget that this is the same government that wanted to shutdown anything that has to do with crypto and even went after Binance in order to demand a bribe. If them dey wake crypto firms to get offices here then be rest assured that any all and actions you take on any of those firms will be publicly available to the government and they'd tax the hell out of the crypto firm and it's users. Crypto was created to be an autonomous system. When I see government trying to sabotage this, it's sad to see.

"Safety of users" una. Una think say this government care whether you got scammed or lost money on your trades/investments?

Are we after all these? Or we want a decentralized system where we can run our cryptocurrency transactions without any third party?

All I want from Federal government is to bring back p2p in our cryptocurrency exchanges, instead of given them order to create offices in the country.

This order can come with several disadvantages to crypto users because the government might take advantage of these to get data from centralized exchanges under the registered organization just to get some crypto users to use as a scape goat when talking about economic issues.

Let’s just be carful as we further use exchanges, the Nigerian SEC can be a spy to get our data to federal government.

This action taken by the SEC branch of Nigeria nah beta one. Reason be say, any person fit just wake up dey claim say them be platform wey you fit trade your coins and no get proper registration under the Virtual Assets Service Providers and if anything happens, you no go fit know who to hold.
As them don mandate say these providers get their offices, e go dey safe for people to do businesses with them because them no go just dey online, but you fit reach them for their offices too if Incase you get issues you need clearance over which go help boost investor confidence.
 
This nah the Link to wetin Op drop.

Shouldn't it be better to tag this thread " Advantage of establishing local crypto offices in Nigeria?. From the title of the thread, it almost sends a meaning that's different from the content you've put out here.

Establishing a physical office by crypto firms in Nigeria doesn't make any difference with what we already have in operation at the moment and the way crypto is designed to work isn't such that users have to depend on the services from a physical office before having a smooth transaction. If we have to depend on a physical office of Binance or any other reputable exchange for instance before knowing that such an exchange is transparent and that it can provide the right customer service, it doesn't make any difference between using crypto and using banks or the fintech companies cause their services would likely follow the same or similar order.

On the part of the government, it's not out of place for an exchange that operates in its jurisdiction to have an office that would serve as a means through which the government can relate directly with them and get benefit from it through tax and other medium but the existence of an exchange office in a country isn't more of the services it's to provide to her users cause it's the last state an average person wants to get to where he has to visit exchange offices to clarify issues.

 The establishment of local offices by crypto firms in Nigeria, as directed by the Nigerian security and exchange commission (SEC), is a welcome development for several reasons:

1. Transparency and genuity: By having a physical presence in Nigeria, crypto firms demonstrate their commitment to transparency and genuity, which can help build trust with the government and regulators.
2. Customer support: Local offices can provide better customer support and services to Nigerian users, such as assistance with transactions, wallet management, and dispute resolution.
3. Regulatory compliance: By setting up offices in Nigeria, crypto firms can more easily comply with local regulations and guidelines, which can help to prevent illegal activities and ensure a safer trading environment.
4. Education and awareness: Local offices can also serve as educational centers, providing training and workshops on cryptocurrency and blockchain technology, which can help to increase adoption and understanding in Nigeria.
5. Internal issue resolution: As you mentioned, having a local presence can help to tackle internal Bitcoin issues, such as disputes and fraud, more efficiently and effective.

This development can help to promote the growth of the cryptocurrency industry in Nigeria, while also ensuring that it is done in a safe and responsible manner.