Report: Legal Experts Say Nigeria in Need of ‘Clear-Cut Guidelines’ for Crypto Industry

Nigerian authorities have been instructed to consider upgrading the country’s cryptocurrency regulatory guidelines because current regulations are not in line with the reality on the ground. According to legal experts, Nigerians’ growing interest in cryptocurrencies means that the country needs to have “clear guidelines” for the industry.

Nigerians Continue to Defy Central Bank

A legal expert speaking at a recent two-day workshop in Nigeria urged authorities to consider upgrading the country’s cryptocurrency regulatory guidelines. The experts argued that such an upgrade is necessary because Nigerians largely ignore current regulations that seek to curb crypto trading and investment.

As Bitcoin.com News recently reported, Nigerians are using peer-to-peer trading platforms to circumvent central bank restrictions on crypto trading or investment. For example, in the first half of 2022 alone, Nigerians using Paxful, a peer-to-peer crypto exchange, reportedly conducted almost $400 million worth of transactions. Moreover, a recent survey found that residents of the West African country are the most interested in cryptocurrencies globally.

Meanwhile, in someof their remarkspublished in The Guardian, legal experts added that Nigeria’s need for clear guidelines is further justified by the investments flowing into the industry. One of the experts, Roger Geisler, a special agent with the Arizona Attorney General’s Office, is quoted in the report as saying that one example of the risks faced by many crypto users could be minimized by having guidelines in place. He states.

earning income from digital currency

. Another expert, David Awe, head of the Africa Fintech Foundry (AFF), outlines the challenges faced in trying to establish a regulatory framework for blockchain smart contracts. However, experts cited in the report agree that lawyers will be tasked with making sure smart contracts meet the standards set.

Ikechukwu Uwanna, president of the Lagos chapter of the Nigerian Bar Association (NBA), says lawyers should look for ways to generate income from the cryptocurrency industry.

“(Cryptocurrency) is the rage today. Everyone is talking about it, but what is the legal and regulatory framework? What are the security issues arising from digital assets? All of these things generate money income for lawyers,” Uwana said.

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