Nigeria, one of the populous countries in Africa and has the largest economy. Bitcoin is legal in Nigeria, but the Nigerian Securities and Exchange Commission (SEC) warns people that investing in Cryptocurrency may be risky and fraudulent. Many people in Nigeria are interested in investing in Cryptocurrency, and its users increasing day by day.
The Nigerian Deposit Insurance Corporation and Central Bank of Nigeria plan to adopt Cryptocurrency technology, and several sub-committees working on implementing blockchain into the governmental insurance and financial services. Nigeria has an abundance of natural resources, with over $500 billion of GDP. Nigerians are actively using Cryptocurrency for Cryptocurrency trading. Bitcoins are accepted as an international payment method. Many Nigerians are making Cryptocurrency trading without knowing the other opportunities of blockchain technology in other domains.
There are many cases in which many people lost their savings have invested in Cryptocurrency trading and end up losing because of scams. The economic and financial crime commission (EFCC) declared a fight against fraudulent transactions, and it also wants the people to stop patronizing such schemes. In 2019, the loss of Cryptocurrency crime to 4.5 to billion dollars.
Despite these warnings, many people still follow these money doubling schemes, known as Ponzi schemes, and ended up losing money to the scammers. Nigerian authorities try their best to relate these Cryptocurrency trades to protect their people from losing money. Enlightenment campaign is conducted by the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC) long with Nigeria stock exchange to educate Nigerians on the risk involved in this trading.
SEC wanted to develop a regulatory framework for regulating the digital currency sector, and educating law enforcement agencies, providing product investors with Cryptocurrency. Bitcoin ethereum are the most popular cryptocurrencies used by Nigerians. The awareness of Cryptocurrency trading in Nigeria is limited to millennials and between the 18 to 40 age groups. Count of people interested in learning about this Cryptocurrency transaction is increasing day by day despite these scams. And readings and dealings with Cryptocurrency are legal and other relevant laws. There is no law in Nigeria to control or regulate the Cryptocurrency’s illegal transactions. It’s hard to control the crime acts using the Nigerian government’s Cryptocurrency.