Trading in Bitcoins has been one of the most popular businesses in Nigeria in recent time. You might have heard about it from people or read about it on the internet.
Before we go into the legality of Bitcoin in Nigeria, let’s know what Bitcoin means.
What is BITCOIN?
Bitcoin is a worldwide electronic currency and a digital system of payment. It is known as the first decentralised cryptocurrency because it works without a single administrator or central repository i.e. no government, bank, company or individual owns or controls it. Bitcoin can be used in any country and anonymously because Bitcoin wallet doesn’t use your identity and a new one can always be opened easily.
For more information concerning bitcoins, continue reading here.
Now, is Bitcoin investment legal or illegal in Nigeria?
The legality of Bitcoin investment differs from country to country and it is still changing or undefined in many of the countries. Although the majority of the countries have not branded the use of Bitcoin as illegal, many of them have varying regulations on its use as money. While some countries have restricted or banned the usage of Bitcoin, others have allowed its use and trade.
Earlier this year, the Central Bank of Nigeria (CBN) issued a circular to banks and other financial institutions requiring them not to use, hold, trade and/or transact in any way related to Bitcoin and any other digital currency. The fact is that the Central Bank cannot regulate or control Bitcoin because they do not own it. They are only trying to discourage people from using it and that they should avoid the risky business of cryptocurrencies that are now becoming popular in the country.
One major problem is the anonymity in the Bitcoin investment. This anonymity has caused a whole lot of impact on cyber crimes and money laundering activities in the country because it does not reveal identity of people that are involved in the transaction.
So far so good, Bitcoin has continued thriving in the country despite a recent warning by CBN. You can see how a lady makes money online from bitcoin trading. It can be deduced that Bitcoin trading has not been declared illegal in Nigeria. Legitimate Bitcoin investment is a good store of value but it’s also a very risky one. This means that Bitcoin is so much legal as any other business in Nigeria, as long as the risk involved is well understood.