Any crypto enthusiast who has been following the crypto market in Nigeria would be well aware of the fact that the country’s crypto market faces severe restrictions from the government. There are several reasons behind this issue, one of which happens to be the various losses people have had to suffer over the years. Losses like these are also the reason why the crypto market in Nigeria happens to be either peer to peer or underground.
Therefore, it only makes sense that the Nigerian government is looking for ways to make things safer for people. There are plenty of financial institutions present in Nigeria. A large number of these institutions have faced crackdowns from the government over the past few years. However, the most serious crackdowns took place during the month of February.
This is because the security regulators of Nigeria are doing everything possible to make sure that the investors remain safe and free from any kind of dangers when making investments. In 2021, a variety of financial institutions present in Nigeria underwent a fair bit of scrutiny, and for good reason. You may not know this, but things like these are not only happening in Nigeria. As a matter of fact, there are plenty of countries that have been implementing crypto-related regulations for a while.
The government of the United States, in particular, has been quite proactive and is leaving no stone unturned to make sure the crypto world remains safe. What’s more, the securities and exchange commission created a fintech division dedicated to studying a variety of blockchain and crypto investments and products. The main reason behind this task force is to gain knowledge regarding crypto and make sure that its landscape is free from acts of cyber terrorism.
Recently, there have been plenty of incidents where crypto trading platforms ended up losing a great deal of money because of getting hacked. The Poli Network incident, in particular, comes to mind as the platform lost more than $600 million. With so many threats looming large in the crypto world, it is only understandable that governments are so hell-bent on their regulations.
It would be fair to say that the steps taken by the security regulators in Nigeria are fair, considering the amount of financial corruption that has happened there over the years. It will not only make sure that the investors remain safe but also encourage people to make more crypto investments down the line. It is a proven fact that countries that enforce such regulations have had a higher percentage of crypto investment success stories than those that did not.