Sunday, June 23, 2024

Nigerian legislators are being urged regulating the cryptocurrency industry.

Cryptocurrency is the keyword for this decade. It has investors, traders, and even many institutions going around. The very advantage of cryptocurrency is the decentralized nature of blockchain technology. This technology is not governed by any one system or any authority group. This is also the reason that it is a space for a lot of vague and malicious activity.

Concerns of the Legislation

The same concern is currently raised in the Nigerian Administration. Nigerian blockchain lobby group Senate Ihenyen has come forward and raised his concerns over the lack of governing law over cryptocurrency. This gray area over the functioning of cryptocurrency can be used for fraudulent purposes. It can also be used in Ponzi schemes, as researched by the Senate.

There are laws in the Nigerian government for capital markets and the securities exchange, but there are no laws for digital assets. Crypto Ponzi schemes have no standard protocol in line. The prime focus here is the Ponzi Schemes that cause the government a lot of money. These are great financial losses.

A new law is required

It is also noted that many crypto Ponzi schemes are unrelated to actual cryptocurrencies. Nonetheless, a law is requested to govern all these transactions. Cryptocurrency technology might not be in the darker zone right now, but it holds the potential for the same. So the legislators are requesting the government to propose a new bill banning Ponzi schemes. This bill should also include the regulation of cryptocurrencies. Once regulated, cryptocurrencies do not carry a threat to greater financial scams.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
RELATED ARTICLES

Most Popular