It has been over a decade since the cryptocurrency invention came into existence with the Bitcoin taking the lead since 2009 when its price was relatively insignificant. On the other hand, the Floridan Programmer; Laszlo made an indelible blunder by trading 10,000 BTC for 2 of Jercos pizza on May 22, 2010 which is being celebrated in the world of crypto till date.
The said invention has gained much traction lately by investors and other freedom fighters if I should borrow the word of (theycallmedan) given to the great potential spotted in the future of not only BTC but the cryptocurrency invention in general. Contrarily, it has also come under heavy criticism by the government and people who canvass negative rumors about the invention circulating that it's used for money laundering, funding of terrorism and other malicious activities in the society.
Lately we saw how the security and exchange commission (SEC) impounded against different stakeholders like: Binance, Coinbase, Ripple etc in order to regulate the trend but current indications have proven that the system is yet to be effectively and fully regulated. However I'll keep on my position that government internet over this invention is for the good of everyone because scamming people of a particular jurisdiction through cryptocurrency tantamount to scamming the government of same country since these citizens are obliged to remit something substantial to the government account on monthly if not yearly basis.
Currently, the Nigerian government joined in the queue for a safe zone in trading and owning virtual securities and assets after placing embargo over the invention in 2021 at the last bull run. However, the order in 2021 was to block every account both institutions and individual accounts that trades cryptocurrency or has something related to it. This order was ruled to mitigate against money laundering and terrorism funding and other society irregularities which compelled folks to resort to P2P trading of crypto against getting your account hacked by the bank.
On a good note, the government of president Buhari partially lifted the ban suggesting that Nigerians are free to trade and hold virtual securities but was not so lucid about the inclusion of cryptocurrency. Currently, on 22nd of December 2023, the Apex bank of the country (CBN) through the director of finance and regulatory department gave another circular which superseded the 2017 and 2021 circular to permit the regulation of virtual asset service providers but not also distinct on the context and demand of the regulation.
In the same vein, banks and other financial institutions are also restricted from holding or trading virtual assets through their accounts which makes the circular full of uncertainties.
However, given the fact that the dictation of the circular isn't well spelt out, we may not say the embargo on cryptocurrency and other virtual securities have been lifted since other agents of the economy are still confined from trading and holding the underscored context. Do we deduce that the government is set on a tour to indict innocent citizens through an undefined circular? Well, the fact is that Nigerians are wise, we will Keep an eye until the government demystifies their regulatory structure for cryptocurrency and other virtual assets in the country.
To every concerned Nigerian, we keep looking forward to seeing the guidelines of the CBN to VASPs (virtual asset service providers) . We'll trade with them if the terms are for the good of the masses but will also back off and continue with our P2P if the terms aren't favorable.
There are some expectations to keep in mind as the CBN has decided to usher their guidelines to VASPs. These may include: provision of data of Nigerians with traces of virtual asset ownership, taxation on cryptocurrency ownership, blocking of individuals accounts etc.
Provision of data of Nigerians with trace of virtual asset ownership.
The fact about regulation is that one can only regulate what he knows. In response to this, the Apex bank through her agents (commercial banks) will first get to know the number of virtual asset owners in the country since the second party (VASPs) has a connection with the banking industry. On the other hand, there is the possibility for streamlining inaccurate data since the majority of individual data that will be made public belong to whales and other substantial virtual asset owners.
Consequently, it's funny the country has been struggling with the provision of accurate data but the one made available at this time will be used for statistical and research purposes which will further contribute to the world of cryptocurrency in general.
Tax imposition on cryptocurrency ownership.
Well, it is only the classical economists that believe that government has no need being in business but on the contrary, the government interest over the Crypto sphere is simply to take their share of the big pie since the reward for labor is wages so also the reward for government regulation of the cryptocurrency invention is taxation given to the fact that the money realized from this is further used in protecting the citizens and other developmental purposes.
blocking of individuals accounts
This is the final phase of my observation in the intention of the government concerning the regulatory pattern yet to be given to VASPs. We know there are individuals who made reasonable ends through participation in airdrops and other cryptocurrency offered opportunities. However, these individuals may be queried on the possibility of ownership of such sizable accounts which may further lead to restriction of their bank accounts against using it for any transactional purposes which is also why they restricted banks and other financial institutions in trading or even holding virtual assets.
Finally, we can't conclude that the government isn't aware that the bull run is around. The expectation in this bull run is a massive price increase of virtually all cryptocurrency which will be sold by individuals within the period in view. However, there will be an excessive inflow of money into the economy which may lead to Inflation so in order to prevent this, a regulatory control has to be given to VASPs in order to see if the effect of the bull run would have little or no malignant impact on the economy.
As I earlier emphasized, the government isn't definite over what they meant by regulating the actions of VASPs in the country until they get into action because it seems illusive and apparently confusing how the Apex bank of the country would give such a monetary control while restricting their counterparts (commercial banks) from engaging into what they're in to control. Finally, for every concerned individual, my advice is for everyone to trade cautiously until their purview and harangue becomes lucid to all. Thank you for going through.