Despite warnings by regulators and legislators, Nigerians have continued to invest in crypto currency, trading up to N1.38 billion across 13 local crypto-currency exchanges in the country.
However, analysts have urged government to embark on smart regulatory tactic in controlling the surge in the trend.
Speaking with LEADERSHIP at the weekend, software developer and chief architect at Cymantiks Nigeria Ltd, Emeka Okoye, urged the government, particularly the Central Bank of Nigeria (CBN) and the Nigeria Deposit and Insurance Corporation (NDIC), which have been at the forefront in the fight against crypto currency in the country, to do a rethink on the way to regulate the use of crypto currency.
Noting that crypto currency will not take the place of fiat money, he said the criticism against crypto currency will further fuel speculation and encourage its use by outlaws.
The International Monetary Fund (IMF) had last week urged governments to look into the regulation of crypto currencies in the fight against money laundering and financing terrorism.
Many countries in recent times are coming up with stronger regulations for the trading of crypto currencies. Although the value of Bitcoin, which is the most popular and most traded crypto currency, has been down since December 2017, interest in the currency is yet to wane in Nigeria.
Having seen the highest weekly trading average of N1.94 billion in mid-December last year, weekly average turnover had dropped to N1.299 billion at the end of December before rising to N1.817 billion in January.
As at February 12, 2018, which is the latest data on Coin.dance, a global crypto currency tracking website, weekly average of Bitcoin trading on the exchanges in Nigeria was at N1.389 billion. This is aside the investments of Nigerians in other crypto currencies such as Ethereum and Billioncoin among others.Okoye advised regulators in the country to adopt “smart regulation” rather than outright ban of crypto currency.