The Nigerian Senate Investigates Local Bitcoin Transactions

nRunaway Comment: Nigeria is one of the fastest growing Bitcoin markets in Africa. Currently, the Nigerian parliament has taken notice of the market’s activity and is therefore prepared to investigate it. The Nigerian Senate has ordered the relevant committees to study this area to think about how to take control of the market. However, given the large number of local transactions are conducted through private trading organizations, the investigation is somewhat difficult.n
nTranslation: Inan
The Nigerian Parliament wants to know how to control bitcoinn
The Nigerian Senate, the Nigerian parliament’s upper house, has ordered a survey of local Bitcoin transactions. Senate Deputy Chairman Ike Ekweremadu explained that “the Board of Banks and Other Financial Institutions” will have two weeks to “investigate the viability of bitcoin as a form of investment” and “advise on how to control its use and transactions.”n
The Senate also called on the Central Bank of Nigeria (CBN), the NDIC and the NSE to jointly launch a campaign against the risk of bitcoin trading. It urges these agencies to make a clear statement about the dangers of using cryptocurrencies to store value. Last week, CBN President Godwin Emefiele pointed out: “Encrypting money or bitcoin is like a gamble, and everyone needs to be very careful.”n
Private trading organizations difficult to investigaten
But those who want to control the use and trading of bitcoin in Nigeria have to face the bad news that the local market is more decentralized than most markets and thus less affected by the outside world. This is because a large number of transactions are conducted in private organizations rather than in public.n
Despite the recent record growth in P2P transactions in Nigeria, local crooks are rampant, leaving many traders to trade in informal places on Telegram and people who trust each other to trade only in their circles. It is reported that these organizations will examine ID cards and banking documents that they wish to join their owners, making it difficult to penetrate into their own premises. They also operate face-to-face on the actual transfer, and are held in secret places at home or behind small shops.n

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