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.