Cryptocurrency in Nigeria: What is It and How Does It Work?

What is Cryptocurrency?

I once read an advert on a bus on Lagos roads and the advertisement read, “If you’re seeing cryptocurrency on a bus, then, it’s time you invested in them.” Or something along those lines. And the reality of that advert hit me. Cryptocurrencies are no more something restricted to only a specific few. It’s no more limited to just billionaires and millionaires. In fact, with the technology we have at our fingertips, and with adequate utilization of these technologies, we can all become billionaires in our own rights.

You must have come across the term, “Cryptocurrency” one too many times. Perhaps, you’ve even been advised to invest in them or trade with them to boost your wealth. But how can you trade witth something you don’t know about, right? A cryptocurrency is any virtual or digital currency, secured by cryptography. This makes cryptocurrencies impossible to counterfeit, and beyond impossible to double-spend. You’ve definitely heard of stories involving fake naira notes, and even dollar notes. But not cryptocurrencies. They are so secure that you couldn’t fake them.

Unlike country currencies, cryptocurrencies aren’t issued by a central authority. This makes them immune to every form of government interference and manipulation. Cryptocurrencies are secure systems that enable safe online payments, denominated by virtual “tokens.” It is basically a form of online payment that can be exchanged for goods or services. There are over 6,700 cryptocurrencies at the moment and some of the most popular ones are bitcoin and Ethereum.

How Does Cryptocurrency work in Nigeria?

Nigeria Security and Exchange Commission (SEC) issued a statement to regulate digital assets such as cryptocurrency in the West African nation. This statement was issued because they discovered that digital asset offerings, such as cryptocurrencies provide another way for people to not only invest their money but to also keep it as an asset. Although this was surprising to many because the Central Bank of Nigeria (CBN) had earlier stated that cryptocurrency trading was not secured by them or the government, yet it’s no news that cryptocurrencies have been helping Nigerians accomplish great feats both within and outside the country.

Here are major things you should know about cryptocurrencies in Nigeria:

  1. Cryptocurrencies are only regulated as digital investments.

According to SEC, every crypto asset will be treated as a security, except the issuer or sponsor has evidence of ownership. This means that whoever wants to make use of crypto assets to store or invest money will need to prove it. The same statement by SEC also stipulated that cryptocurrencies within the country will be classified as

  • Crypto assets
  • Utility or non-security tokens
  • Security tokens
  • Collective Investment Funds and Derivatives
  1. Cryptocurrency traders will be regulated by SEC.

SEC announced that everyone involved in the Blockchain process is to be registered with the commission and is to adhere to the stated guidelines. This means that those involved in the process, such as people involved in reception, transmission, and execution of orders on behalf of other people, dealers on own account, portfolio management, custodian, investment advice, and nominee services.

Issuers and sponsors, both local and international will be registered and regulated by SEC and will have to open branch offices within the country.

  1. Foreign digital investments will also be regulated.

For cryptocurrency to work effectively in Nigeria, foreign sponsors and issuers will have to be registered with SEC and all their activities regulated.

Digital assets made specifically for crowdfunding purposes or used as money for transactions will be exempted from the regulation law. The regulation is necessary, so as to protect both the investors and the interests of the general public. The regulation is also necessary to improve market integrity and basic transparency.

Where to Buy Cryptocurrency in Nigeria

Luno

Luno is probably the most popular way to buy cryptocurrencies. As a digital currency, there’s no physical place for you to get your cryptocurrencies. If anyone tells you of a real-life geographical location for you to go, then there are very high chances of you being in the hands of a scammer. You can access Luno via the web, iOS, or via your android device. If you’re using your mobile phone, you can download the Luno app and begin to access your cryptocurrencies easily and quickly.

With Luno, you can sign up, deposit money, and buy your cryptocurrencies. You can get started with Luno by clicking on this link.

Quidax

Quidax is another safe and secure way for you to trade and invest in your cryptocurrencies. It is simple, secure, and seamless. Quidax has an unrelenting mission to provide you “with a delightful trading experience.”

You can find out more about Quidax here by visiting their website.

Patricia

Patricia is another popular avenue for you to buy, trade, and invest in cryptocurrencies. By harnessing the power of cryptocurrencies. Click on this link to begin your cryptocurrency journey with Patricia.

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