Is There Any Hope Left for Nigerian Cryptocurrency Traders?

Is There Any Hope Left for Nigerian Cryptocurrency Traders?
2 April 2021
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AllAfrica InfoWire (Washington, DC)

As Nigeria is considered to be second largest bitcoin market in world after United states, the recent news regarding the ban of cryptocurrency has put Nigerian cryptocurrency traders under a tremendous pressure, and any hope to see things in a better shape would help the investors to hold up their trust on their investments in cryptocurrency.

Not only bitcoin users, but also platforms which facilitates crypto trading like are also affected by the cryptocurrency ban

There were many small investors, who were happy with their investments in bitcoin until the crackdown by CBN on cryptocurrency took place. The conditions are getting worse, as banks and other financial institutions are looking forward to closing those accounts which are involved in cryptocurrency exchange. This will definitely affect the demand for cryptocurrency in a negative way. Investors, who had plans in future to invest more in bitcoin are now confused. The ban will not only disturb the financial transaction system, but may also affect the bitcoin price.

What is next for Nigerian crypto users?

Nigerian investors are now shifting towards the peer-to-peer market, where crypto traders can sell bitcoin for money or other digital currencies. The investors believe that, the ban will reduce the foreign investments, and the also believes that inconsistent policies by the government regarding crypto currency would worsen the economic condition of the country. The government is not fully aware about the consequences of banning cryptocurrency.

The best part of the whole situation is that, for now crypto traders are optimistic about the possible chances of profit, and looking forward to potential opportunities by cryptocurrencies. The traders are waiting for the decision of ban to be reversed as the, Nigerian vice president gives hope to the people by addressing that CBN needs to come up with solutions rather than prohibiting the use of cryptocurrency.  The vice president also believes that CBN needs to come up with a proper solution that facilitates innovation and growth.

Cryptocurrency operates in almost all small to large transactions in Nigeria and it would be difficult for small businesses to settle, as payments in bitcoin was agreed among many businesses and now crypto being banned in Nigeria will make things difficult for crypto users to tackle.

The Main Reason behind the Ban

The use of cryptocurrency for illegal activities and transactions has led to this crackdown by CBN. The Security and Exchange Commission clarifies that if banks do not stop facilitating the transaction of cryptocurrencies, they will face strict regulatory sanctions. The actual risks and threats towards digital assets due to cryptocurrencies misuse are still not clearly mentioned by the CBN.

Most probably, the CBN will come up with new legislation regarding cryptocurrency shortly. The government will track down the cryptocurrencies which were involved in crypto abuses and will only allow those cryptocurrencies that hold less risk to the country, and more easily controlled.

The monetary authorities will take steps, and a new regulation system regarding cryptocurrencies would be introduced with some major changes. Another expected change would be the new Nigerian digital currency to replace bitcoin and other cryptocurrencies.

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