Ebene News – US – Crypto restriction opens Nigeria to new overseas rush

• More Nigerians register on trading platforms
• Central Banks Survive Lifespan, Economist Says
• Unparalleled income that drives the popularity of investments

Foreign technicians and innovators have renewed the historic rush for the Nigerian market, following the official restriction of local transactions in crypto-currencies

The Guardian has learned that the number and intensity of online meetings with young traders on how to circumvent restrictions imposed by the Central Bank of Nigeria (CBN) on banks and other financial institutions to conduct transactions have increased several times since last week

In one of the meetings the Guardian attended by proxy last week, young Nigerians were asked to subscribe to a credit card that was launched a few months ago. The card’s selling point described as a lifestyle card is that it allows users to convert cryptocurrencies into five different reference currencies – dollar, pound, euro, yen and yuan

A senior presenter at the Zoom meeting said that each of the cards costs $ 79 and allows users to convert major coins into any of five currencies and could be used by anyone. Which MasterCard compatible platform He said it would be especially useful for young Nigerians, as the CBN “excludes the financial system from crypto trading” The card, it was revealed, is backed by a comprehensive academy that takes students subscribers through the complexity of digital currency trading and blockchain technology Users can store up to $ 500,000 on the credit card, which is used worldwide for any transaction

Besides the zoom meeting, Nigerian subscribers who are promised a bonus every time the card ‘is redeemed’ regularly receive requests from young Nigerians The Nigerian market leader, it has been learned, is available for answer questions regularly because “the local economy is crucial for the company”

There are many other digital cards and apps marketed to Nigerian crypto enthusiasts as alternatives to the now prohibited regulated financial system from having anything to do with fluid investing

“From Asia to the United States, cryptocurrency trading is the new oil And they take no risk They offer different incentives including bonuses and discounts just to get market share” , a source said over the weekend

On Monday, another online engagement was scheduled for 9pm by another foreign team to present Nigerians with “an easy way to trade in the unlimited digital ecosystem without going through the banking system”

And as foreigners compete to take advantage of the huge Nigerian market opportunity, the number of first-time registrants has dramatically increased, The Guardian has also been told

A devotee who said he made more than 10million naira in profit from digital currencies in the past three years said he helped more than 10 people register after the CBN restriction

“Interestingly, here are some of the people I couldn’t convince to join before the ban Suddenly everyone wants to see how it works and how it can actually serve as a secondary scramble.” more people sign up, that seems to balance the number of people involved in a panic sale, “the source said

Local startup exchanges, it was also learned, are currently facing a Herculean task to survive the restriction as banks sever ties with them Some of the companies, it was revealed, are struggling with time to revamp their platforms “some of them weren’t set up to handle peer-to-peer (p2p) trading” before now

With most of their subscribers moving their accounts overseas, a source said businesses face an existential threat

Following the controversy that followed the restriction, the Senate summoned the CBN and the Securities and Exchange Commission (SEC), which initially appeared to have conflicting positions on fashion

Last year, the SEC released a regulatory framework for virtual and digital assets in Nigeria, recognizing asset classes It stipulated as part that “all digital asset token offerings (DATOs), Initial coin offerings (ICOs), security token ICOs and other digital asset offerings based on blockchain in Nigeria or by Nigerian issuers or sponsors or foreign issuers targeting Nigerian investors should be subject to regulation of the Commission

“Existing digital asset offerings prior to the implementation of the regulatory guidelines will have three months to submit the initial assessment filing documents for actual registration, as applicable

“Any person (individual or company) whose business involves any aspect of blockchain-related virtual digital asset services must be registered by the Commission and, as such, will be subject to regulatory guidelines

“These services include … the reception, transmission and execution of orders on behalf of other persons, proprietary brokers, portfolio management, custodian services for investment advice or agent. “

But last weekend the Commission turned around, saying it was aligning itself with the new position taken by the Central Bank

“The SEC made its statement at the time to provide regulatory certainty in the digital asset space, due to the increasing volume of reported flows Subsequently, in its capacity as regulator of the banking system, the CBN identified some risks which, if they persist, will threaten investor protection, a key mandate of the SEC, as well as the stability of the financial system, a key mandate of the CBN

“In light of these facts, we have engaged with the CBN and agreed to work together to further analyze and better understand the risks identified to ensure that appropriate and adequate mitigation measures are put in place. in place, if these guarantees are authorized in the future ”, declared the institution in its latest version

But an economist at Lagos Business School, Dr Bongo Adi, has instructed authorities to be direct and to align with global movements as it cannot contain or control the evolution of digital currency, adding that the underlying technology, Blockchain, is becoming a way of life

Adi said central bank exceeded limit as digital currency grew in importance With online communities becoming more and more contiguous, he wondered how CBN intended to keep digital currencies at bay

“It’s not about legal capacity, it’s about technological capacity Technological capacity is greater than legal capacity It is about what you can do, not what you want to do

“The volume of transactions on Aliba is maybe a million times that of the transaction in naira If Aliba wants to introduce a medium of exchange for the users of the platform, how do you regulate them? If you ask me, the shelf life of the central bank has expired, “he insisted

The economist instructed the CBN to follow other central banks that find creative ways to align with cryptocurrencies, adding that Nigeria cannot escape Blockchain, which powers digital currencies if it thinks there is a problem with cryptocurrencies

“The CBN should instead hire smart people to study how the architecture works and stop this shenanigans. You can’t regulate what you don’t control You can regulate the naira because you created it,” said declared Adi

Trader and lawyer Isaac Ijuo said it was unfortunate that Nigeria did not innovate to tax the huge crypto transaction, but made a futile effort to kill the market

Ijuo said banks until recently were making billions in the market while government was left out as young guys made untaxed millions naira per month

In October 2020, a UsefulTulips report claimed that $ 32.3 million bitcoins were traded in Nigeria, a market ranked second after the United States in terms of transaction volume

Another report says Paxful, one of the leading peer-to-peer bitcoin markets, has over 1 million registered accounts from Nigeria, accounting for 25% of its customer base The company reported that Nigeria traded 60,215 bitcoins worth more than $ 566 million in five years, from 2015 to 2020

As authorities find a way to regulate or close the investment window, young people are not ready to back down, as the government is not really interested in job-creating companies. But below, the results revealed that an unparalleled return on investment is responsible for the popularity of the window Therefore, the authorities are dealing with a generation who know nothing about the capital market but who circulate with global charts on digital currencies on their phones

There are occasional losses but the gains are almost irresistible For example, bitcoin, the flagship and most capitalized cryptocurrency, has gained 210% in capital appreciation in the past three months At the time of going to press, the year-over-year appreciation was around 400%

Also in the past year, Ethereum, the second largest coin, gained 790% FTX Token, another leading coin, also gained over 700% Some cryptocurrencies recovered over 1000% , while the worst performing marketable assets have appreciated by at least 300%

“How much would you have gained in capital appreciation if you had invested in the capital market over the past year,” asked Gideon Awoyemi, who is actively playing in the global market

Additionally, cryptocurrencies give investors liquidity and the power to make unusual choices with other investments Traders watch their portfolios and can liquidate, buy or convert to another asset whatever they want

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Nigeria, Central Bank of Nigeria, Digital Currency, Bitcoin, Cryptocurrency Exchange

Ebene News – US – Crypto restriction opens Nigeria to new scramble ‘foreign

Source: https://guardian.ng/news/crypto-restriction-opens-nigeria-to-fresh-foreign-scramble/