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The Nigerian minister calls for fair Bitcoin regulation

A Nigerian minister is calling for friendly bitcoin regulation that would encourage innovation and allow citizens to participate in the opportunities offered by the network rather than stifling the use of the opportunities made possible by the technology, Bloomberg reported.

“Clem Agba, Minister of State for Budget and National Planning, said the uncertainty in regulating cryptocurrencies is depriving the government and citizens of the opportunity to maximize the opportunities the technology offers,” the report said.

In February, the Central Bank of Nigeria (CBN) recalled that it had banned financial institutions from allowing Bitcoin-related transactions back in 2017 and ordered them to close accounts that have since been cleared with cryptocurrency exchanges. The central bank said the decision was necessary to prevent crime and reduce risk.

When the renewed ban came into effect, trading volumes in the peer-to-peer (P2P) markets skyrocketed. By April, P2P bitcoin trading in Nigeria had increased 27% as citizens flocked to the alternative bitcoin ramp. Although the CBN had banned financial institutions from trading BTC, the local media company Today AG reported that the central bank has not restricted the use of Bitcoin by Nigerians. This subtle difference, coupled with the decentralized and uncensored nature of Bitcoin, enabled citizens to bypass the exchange ban and resort to pure P2P solutions to purchase BTC.

Although Nigerians were able to bypass the Bitcoin trading ban, Nigerians indicated that the CBN’s move is likely related to the “End SARS” protests that tried to stop police brutality in the country last November. CBN ordered banks to freeze protesters’ accounts to stop the campaigns; However, Bitcoin also provided a drain valve in this case, which made it possible to continue donations and funding.

“The EndSARS protests, which were partially funded with cryptocurrency even though CBN restricted multiple accounts, can be drawn straight to these latest regulations,” said Joachim MacEbong, senior analyst at SBM Intelligence in Lagos, in February. “This latest instruction will end up making the case for adopting cryptocurrencies better than any other argument. One promises freedom, while the status quo only increases restrictions. “

Ten months later, a minister appears to promote a “healthy cryptocurrency space” in Nigeria. According to Agba, the regulation should allow the promotion of Bitcoin and new developments in the industry rather than cracking down on companies.

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