Bitcoin regulation in Nigeria has not come very far over the last year with any clear regulations set out to restrict or regulate the use of the cryptocurrencies. While regulation does allow consumers protection from unforeseeable financial loss, these come at a heavy cost in terms of taxes and fees charged. The grey area on the asset currently allows users to legally use Bitcoin without facing huge consequences. The central bank of Nigeria has warned against the use of Bitcoin and also prevented other banks and financial institutions to use the cryptocurrencies. However Bitcoin exchanges such as NairaEX allow you to purchase Bitcoin from a reputable and efficient source with purchase delivered within 4 hours!
While the current attitude of the central bank is extremely negative, it has been hinted that the bank is exploring methods of integrating the cryptocurrencies into its infrastructure. As of this month a committee has been set up to explore the viability of Bitcoin but no open announcement has been made with regards to progress and possible projects in development. Many other countries such as the United Kingdom and USA have open announced interest to explore Bitcoin and cryptocurrencies. With projects such as the R3 consortium bringing together a host of banks such as Barclays to collaborate, it may only be a matter of time till public solutions are trialled in a similar fashion to the Bitcoin project run by china.
NairaEX is one of the largest Bitcoin exchanges in the country. Dealing with over 60 000 Nigerians it has one of the biggest user bases having delivered millions of Naira in purchases. The exchange boasts a 4 hours delivery period, one of the fastest in the country, compared to fiat services such as western union which can take up to a week in some cases. As seen in our previous article the exchange boasts many benefits to traditional peer to peer exchanges which may increase the risk of financial loss when trading.