Reading time for the article: 3 minutes Compact: The Nigerian Financial Market Authority wants to regulate companies and service providers. It mainly focuses on trading and investment advice with Bitcoin. Nigeria is one of the strongest growth markets for Bitcoin worldwide. The Nigerian Financial Market Authority wants trade and services regulate with Bitcoin and other cryptocurrencies. This includes in particular transactions that deal with investment advice or the custody of crypto currencies on behalf of customers. However, it also applies to issuers of tokens in connection with ICOs and STOs. Providers should register their business with the supervisory authority and henceforth have to comply with regulatory requirements. The principle is that all tokens and cryptocurrencies are to be viewed as securities until proven otherwise. It can be assumed, however, that there will be no debate about the legal status of Bitcoin etc. hold any kind of token sales. You are now forced to report all commercial activity and comply with applicable standards.
Bitcoin on the rise in Africa
As early as 2019, it became apparent that Bitcoin was enjoying increasing popularity in a number of African countries. Investors are particularly motivated by the economic and structural weaknesses in the respective countries, and a lack of confidence in the problem-solving ability of the respective government also leads to a growing interest in an alternative. Whether investors perceive Bitcoin as a pure alternative to state currencies or more as a speculative asset in times of crisis is controversial. The fact is that the data situation underscores increasing acceptance, making the region currently one of the strongest growth markets for Bitcoin. The regulation now sought should primarily serve consumer protection.
Nigeria faces problems
In addition to the weakness of the country’s own currency, naira, Nigeria is still waging war against Boko Haram inland. The conflict is spreading to neighboring countries and endangers peace and stability in the region. At the same time, however, Nigeria is also the largest economy on the African continent and therefore generally has very good development opportunities. However, in addition to the military conflict, this development is being severely dampened by corruption. This worsened situation with a good starting position can to a certain extent also be transferred to some South American countries. A study shows that the population there is also more open to Bitcoin. Bitcoin thus remains in the running as an alternative to state currencies, insofar as structurally weak states have to find solutions to problems or may find themselves exposed to parallel structures.