Tag Archives: crypto currency

Gov’t suspends plan to regulate cryptocurrencies.

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In September, SEC said it viewed cryptocurrencies as exchangeable securities and it would regulate them to provide protection for investors and to ensure the transactions are transparent.

Nigeria’s Securities and Exchange Commission has said it has put on hold plans to regulate cryptocurrencies in the country.

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“For the purpose of admittance into the SEC regulatory incubation framework, the assessment of all persons and products affected by the CBN circular of Feb. 5, 2021, is hereby put on hold until such persons are able to operate bank accounts within the Nigerian banking system,” SEC said in a statement on Thursday.

The exchange commission’s statement came days after Nigeria’s apex bank ordered financial institutions in the country to close accounts dealing in cryptocurrencies, saying the transactions posed risks to the economy.

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SEC said its statement was necessitated due to several comments and inquiries from the public that there is a conflict between the SEC Statement on Digital Assets and their Classification and Treatment of September 11, 2020, and the Central Bank of Nigeria (CBN) Circular of February 5, 2021.

“We see no such contradictions or inconsistencies,” SEC said.

In reaction to CBN’s circular, Luno, a cryptocurrency trading platform Luno paused naira deposits pending the time it gets “further clarity from the authorities.”

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In September, SEC said it viewed cryptocurrencies as exchangeable securities and it would regulate them to provide protection for investors and to ensure the transactions are transparent.

SEC said it made the statement at the time, to provide regulatory certainty within the digital asset space, due to the growing volume of reported flows while Central Bank has identified certain risks, which if allowed to persist, will threaten investor protection.

Following risks identified in the transactions by the central bank, the SEC “engaged with the CBN and agreed to work together to further analyze, and better understand the identified risks to ensure that appropriate and adequate mitigants are put in place, should such securities be allowed in the future,” it said in its latest statement.

Nigeria has proven to be a hotspot for cryptocurrency. And apart from available statistics, the validation that came in 2020 alone was enough proof. The reasons are apparent: tech adoption, predominant young population, high inflation rates, volatile fiat currency, and an underperforming banking sector.

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During the #EndSARS movement, over $80,000 was contributed in Bitcoin after non-profit activist group, Feminist Coalition’s account for voluntary donations was blocked.

According to a Quartz report, Nigeria accounts for 25% of the customer base of Paxful—a global P2P crypto platform—and has traded over $566 million in 2020. Local crypto exchange platform numbers also tell the story of a huge adoption.

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#Newsworthy

CBN reveal why cryptocurrency ban was so sudden.

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Mr Osita emphasised that cryptocurrencies were largely speculative, anonymous and untuntraceable.

Transactions in cryptocurrencies are largely speculative, volatile and should be discouraged, the Central Bank of Nigeria (CBN) says.

The apex bank gave the explanation in a statement on its official website, by Mr Osita Nwanisobi, Acting Director of Communications.

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The explanation is coming on the heels of widespread reactions to the CBN’s recent directive prohibiting cryptocurrencies transactions by Deposit Money Banks (DMBs).

Nwanibosi stated that the nature of cryptocurrencies created a perverse incentive that allowed for speculation and volatility

“Evidence now suggests that some cryptocurrencies have become more widely used as speculative assets rather than as means of payment, thus explaining the significant volatility and variability in their prices.

“Because the total number of Bitcoins that would ever be issued is fixed (only 21 million will ever be created), new issuances are predetermined at a gradually decelerating pace.

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“This limited supply has created a perverse incentive that encourages users to stockpile them in the hope that their prices rise.

“Unfortunately, with a conglomeration of desperate, disparate, and unregulated actors comes unprecedented price volatility that have threatened many sophisticated financial systems.

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“ In fact, the price of ether, one of the largest cryptocurrencies in the world, fell from 320 dollars to 0.10 dollars in June 2017. The price of Bitcoins has also suffered similar volatilities,’’ he said.

He said that cryptocurrencies do not have real values and cannot be trusted to generate returns on investments.

“Unlike Fiat Money which is accompanied by full faith and comfort of a country or Central Bank, cryptocurrencies do not have any intrinsic value and do not generate returns by themselves.

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“ When one buys a stock, say of a conglomerate in the Nigeria Stock Exchange, its price reflects the activity and production of that conglomerate and the value people place on their goods and services.

“ This price may rise as the conglomerate produces better goods or services and probably gains greater market share.

“In contrast, cryptocurrencies do not have fundamentals and would never have fundamentals.

“Investors only buy in the hope that its use and acceptability will rise, thereby pushing up its demand and price.

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“But since new versions of cryptocurrencies come on stream with new mathematical models, an infinite supply may someday crash the price to zero,’’ he warned.

He, however, assured that CBN’s actions was not meant to discourage technology-driven payment systems but to boost it.

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“At this juncture, the CBN would like to assert that our actions are not in any way, shape or form inimical to the development of FinTech or a technology-driven payment system.

“On the contrary, the Nigerian payment system has evolved significantly over the last decade, leapfrogging many of its counterparts in emerging, frontier and advanced economies propelled by reforms driven by the CBN.

“This is evident from the variety of participants, products, channels, cutting-edge technology in the payments system.

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“ It is also validated by the astronomical growth of volume and value of transactions.

FILE PHOTO: Representations of the Ripple, Bitcoin, Etherum and Litecoin virtual currencies are seen on a PC motherboard in this illustration picture, February 13, 2018. REUTERS/Dado Ruvic/Illustration/File Photo

“Nigeria is an investment destination of choice for international financial technology companies because of CBN’s policies that have created an enabling investment environment in the payments system,’’ he said.

The director added that innovations in Nigeria’s payment system were catalysed by regulatory reforms driven by the CBN.

He said such reforms included the issuance of a raft of guidelines and regulations on Operations of Electronic Payments Channels in Nigeria; Transaction Switching; Card Issuance and Usage, and Licensing of payment service providers.

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“The robust regulatory framework put in place by the Bank opened up the payment system to innovation with several new players across in the following licensing categories-

“Payment Terminal Service Providers (PTSPs), Payment Solution Service Providers (PSSPs), Mobile Money Operators (MMOs), Payment Terminal Application Developers (PTSAs), Switches, Super Agents, Agents and Payment Service Banks (PSBs)

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“This has created both direct and indirect jobs for Nigeria’s youth population.

“Several other initiatives are being implemented to further support FinTech development and creation of jobs. These include regulatory sandbox and open banking principles that the Bank recently implemented.

“The recent regulatory directive became necessary to protect the financial system and the generality of Nigerians from the risks inherent in crypto assets transactions.

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“The risks have escalated in recent times, with dire consequences for the integrity of the financial system and financial stability,’’ he said.

He emphasised that cryptocurrencies were largely speculative, anonymous and untuntraceable.

“They are increasingly being used for money laundering, terrorism financing and other criminal activities.

“ Small retail and unsophisticated investors also face the high probability of loss due to the high volatility of the investments in recent times.

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“In light of these realities and analyses, the CBN has no comfort in cryptocurrencies at this time.

“We will continue to do all within its regulatory powers to educate Nigerians to desist from its use and protect our financial system from activities of fraudsters and speculators,” he said.

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#Newsworthy

Former presidential aspirant calls for crypto ban reversal.

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CBN gave the directive in a circular distributed to deposit money banks (DMBs), non-bank financial institutions (NBFIs), and other financial institutions (OFIs).

Former Nigeria vice president Atiku Abubakar on Saturday called for the reversal of the ban on cryptocurrencies trading in the country.

“This is definitely the wrong time to introduce policies that will restrict the inflow of capital into Nigeria, and I urge that the policy to prohibit the dealing and transaction of cryptocurrencies be revisited,” Atiku tweeted on Saturday.

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“It is possible to regulate the sub-sector and prevent any abuse that may be damaging to national security. That may be a better option, than an outright shutdown.”

CBN gave the directive in a circular distributed to deposit money banks (DMBs), non-bank financial institutions (NBFIs), and other financial institutions (OFIs).

“Further to earlier regulatory directives on the subject, the bank hereby wishes to remind regulated institutions that dealing in cryptocurrencies or facilitating payments for cryptocurrency exchanges is prohibited, ” CBN’s director for banking supervision Bello Hassan and director of the payment system management department Musa Jimoh said.

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The prohibition has drawn wide criticsm from Nigerians, mostly youths who accused the CBN of stifling their financial independence amidst growing unemployment and poverty rate in the country. Their assertions was re-echoed by Atiku, who was Nigerians vice president from 1999 to 2007.

“There is already immense economic pressure on our youths,” Atiku said. “It must be the job of the government, therefore, to reduce that pressure, rather than adding to it.”

“We must create jobs in Nigeria. We must expand the economy. We must remove every impediment towards investments. We owe the Nigerian people that much.”

While Atiku stated that the prohibition on cryptocurrencies will have an adverse effect on the economy, the CBN in January 2017 said digital currencies such as bitcoin, litecoin, and others are largely used in terrorism financing and money laundering, considering the anonymity of virtual transactions.

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Despite the ban, Luno, a cryptocurrency trading platform on Friday urged investors not to panic as their funds will be safe.

The platform in a statement asked crypto traders to exercise patience, and that “there’s no need to take any action regarding your account at this time.”

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#Newsworthy

Nigerians, Celebrities lament Crypto ban.

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In December 2020, Quartz Africa reported that Nigeria was number two in the global Bitcoin market after trading 60,215 Bitcoins in the last five years.

The recent order by the Central Bank of Nigeria which prohibits commercial banks and all non-banking financial institutions from transactions involving cryptocurrencies, has sparked reactions from Nigerians including celebrities.

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NoRM recalls that CBN gave the order this afternoon, stressing that all the institutions are to close the accounts of customers with cryptocurrency transactions immediately.

The CBN directive further added that breaches of the order will attract severe regulatory sanctions.

As expected, many Nigerians have taken to social media to express their displeasure.

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Human rights activist, Segun Awosanya described the CBN’s move as ill-advised, saying, “This is yet another developing horror story in our dying society. The govt via @cenbank is now shutting down cryptocurrency in a desperate move to block any ray of hope for the huge youth demographic they have largely failed. This won’t end well. This is ill-advised.”

Senator Ben Murray Bruce faulted the apex bank’s decision, saying, “I thought it’s universal knowledge that decisions or policy regarding finance or economy should never be hasty?”

Blogger Japhet Omojuwa said, “Individuals that can fund the entire Nigerian budget for donkey years are betting on Bitcoin but Hassan and Musa are afraid it could make Nigerians wealthy. Welcome to the Dark Age! Others are in the Age of Deep Learning. We are in The Age of Deep Poverty.”

In December 2020, Quartz Africa reported that Nigeria was number two in the global Bitcoin market after trading 60,215 Bitcoins in the last five years.

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Nigeria got to the position in the market after young citizens who were shut out from local payment methods by the government opted for Bitcoin to fund the October 2020 EndSARS protest against police brutality and bad governance in the country.

DJ Switch, who partook in the EndSARS protest, expressed displeasure at the CBN order, saying, “If the ban on crypto by CBN is true, it points yet again to the ill-informed, backward, poverty promoting dinosaurs T-Rex leading us. Use your time to investigate and close accounts sponsoring terrorists in the country if you don’t know what to do!”

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#Newsworthy

This new way of buying Bitcoin with ease in 2021 will get you overwhelmed

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Somehow, all the wild Bitcoin predictions you heard earlier this year don’t seem so wild anymore.

Google searches for how to buy Bitcoin in 2021 have exploded since Bitcoin passed ? 11 million for the first time ever.

You may also be wondering whether it’s too late to buy Bitcoin as 2021 knocks on our doors. Like this video says, it’s better to look at it in terms of how valuable Bitcoin will be in the future. And it’s best to start planning for that future now.

So how exactly do you join the Bitcoin club? The easiest way to buy Bitcoin is through a cryptocurrency exchange. This is an online platform where you can deposit money in a normal currency like Naira and convert it to a cryptocurrency like Bitcoin at the current exchange.

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What to Look Out for When Buying Bitcoin

When looking for a cryptocurrency exchange to use, there are some things you should look out for.

  • First, you want a fast exchange. Because of how quickly the price of Bitcoin goes up and down, you’ll need to be able to buy and sell quickly. Always look out for an instant buy and sell option.
  • Secondly, you want an exchange that will allow you to send your Bitcoin to people and receive Bitcoin from people quickly if you need to.
  • You’ll also need an exchange with at least 1 stable coin. A stablecoin is a cryptocurrency that is tied to the price of a normal currency so that it doesn’t swing up and down wildly. For example, Tether also known as USDT is a stablecoin and it’s tied to the US Dollar. So 1 dollar is equal to 1 USDT. You need a stablecoin so that when Bitcoin is unstable and you want to wait for things to cool down, you can quickly convert to a stablecoin and back.
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Where to Buy Bitcoin in 2021

A few years ago, you had to change your money to dollars or run around Bitcoin trading groups (some of which were scams) just to buy Bitcoin. But now, you can do it from the comfort of your house because there are several cryptocurrency exchanges that allow you to buy Bitcoin with Naira.

Some exchanges have websites, mobile apps, or both and you can choose which platform to use depending on what works best for you.

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For example, exchanges like Quidax have a website, and a mobile app for iOS and Android. So you can pick what works best for you.

The most important thing is for you to find a fast, secure, and reliable exchange that will help you enjoy your Bitcoin journey.

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#Newsworthy

N380 forex rate per dollar not devaluation of Naira – CBN.


Governor of the Central Bank of Nigeria, Mr Godwin Emefiele on Saturday clarified that the recent jump in foreign exchange rate to N380 to a dollar is not a devaluation but an adjustment.

According to Mr Emefiele, the apex bank has the responsibility to see to the adjustment in the Naira, insisting that the bank has no hand in what happens in the Investors, Exporters and End- users window.

Don’t Miss:

CBN technically devalue Nigeria Naira.

The CBN had issued a circular to all banks and Bureau De Change on Friday, advising that the BDC should not sell the Dollar more than N380/1USD to end-users.

The Central Bank of Nigeria has the responsibility to see to the adjustment in the currency; what you have seen is an adjustment in currency and we have been accused that we have a hand, we don’t have a hand, Emefiele said.


We allow the I&E window, which is the dominant market to dictate the exchange rate in the market.

At this time the CBN provides FX in that market at 380, anyone who has higher than the 380 can go ahead, but it should be available in the market to fund the domestic market.

He added that the new rate is only an adjustment, but in economics and foreign exchange management language, it is not a devaluation, he maintained.


#Newsworthy…

Crypto: How XRP differ from Bitcoin


The world of cryptocurrencies is still expanding at a very fast rate, with new cryptos being introduced almost every day. Nowadays, there are thousands of cryptos out there, but none of them managed to achieve the popularity of Bitcoin.

Only a handful of digital currencies were successful enough to draw the attention of crypto enthusiasts. Those are Ethereum, Bitcoin Cash, Tether, and others. Yet, one of them is really unique in the way it works — Ripple.

What’s so Different About Ripple?


First of all, Ripple is actually a name for two things. One of them is the cryptocurrency Ripple, often referred to as XRP — the official abbreviation for this currency. The other Ripple is the company behind this crypto. It’s this company that makes all the difference.

Ripple is not made for paying for services and goods. That’s what Bitcoin is for, as well as many other cryptocurrencies. On the other hand, Ripple was created as a payment settlement and money transfer system. On top of that, it is also a currency exchange platform.


The creators of Ripple are of the opinion that existing asset transfer systems are too slow, which they consider problematic. Moreover, these systems aren’t secure enough, which is why they wanted to explore some alternatives and create a solution that’s better than popular services such as SWIFT.

Therefore, the asset transfer via Ripple is not only supposed to be cheaper than current systems but also to provide more security. Most importantly, these transactions need to happen in real time, meaning that Ripple is overall much faster compared to other systems.


In order to make that happen, the creators of this system and the cryptocurrency needed to take a slightly different approach when compared to Bitcoin.

How Was Ripple Created?


Ripple is a product of the Ripple Company that gathered investors who set very clear goals for it. Nowadays, Ripple has several offices and a group of professionals who work on improving and upgrading the system.

This is very different compared to Bitcoin that was created by a mysterious person (or a group of people) called Satoshi Nakamoto. Bitcoin is basically an open-source project, meaning it is maintained and further developed by enthusiasts.


This way, there’s a group of people who don’t really appreciate Ripple as it is often perceived as leaning towards being more centralised than decentralised.

However, that’s not entirely true because Ripple uses a completely different underlying system than Bitcoin, which is still, in its essence, decentralised.


Basically, the network that supports Ripple consists of numerous independent servers. What they do is constant comparison of transactions and records. You can read all about Ripple/XRP crypto to find out more about this currency and its technology.

However, the real question here is whether Ripple is a good alternative to BTC. Is it better?

Is Ripple Better Than Bitcoin?

It’s really difficult to tell since the two cryptocurrencies are very different. When we look at things such as transaction speed and cost of transactions, Ripple is definitely a better option. However, XRP is not nearly as popular as BTC. In other words, Ripple has a long way to go before it reaches the level of adoption Bitcoin has.


#Newsworthy…