Legal scholars recently encouraged authorities to carefully consider revising the nation’s crypto legislative rules at a two-day workshop held in Nigeria. The experts stated that this improvement is required since Nigerians have mostly disregarded the current rules intended to restrict trading or investment in cryptocurrencies.
Nigerians are using peer-to-peer trading platforms to get over the central bank’s prohibitions on cryptocurrency trading and investing. For instance, Nigerians are said to have transacted trades worth almost $400 million on the peer-to-peer crypto exchange Paxful just in the first half of 2022. Additionally, a recent survey revealed that people in the West African nation have the greatest interest in cryptocurrency worldwide.
The director of Africa Fintech Foundry (AFF), David Awe, described the difficulties encountered when seeking to create a legal framework for blockchain smart contracts. However, the experts included in the paper that they agreed it is the responsibility of lawyers to make sure that smart contracts adhere to the established standards.
Lawyers should look for ways to make money from the cryptocurrency business, according to Ikechukwu Uwant, chair of the Nigerian Bar Association (NBA) Lagos division.
“Cryptocurrency is the in thing today. Everyone is talking about it, but what is the legal regulatory framework? What are the security issues arising from digital assets? All of these are money income for lawyers.”
In the meantime, the legal professionals said that Nigeria’s need for clear regulations is further justified by the money that is streaming into the sector in part of their views that were published by The Guardian. According to the study, one of the experts, Roger Geisler, a special agent in the Arizona Attorney General’s Office, provides an example of a risk that many cryptocurrency users encounter but that may possibly be reduced by putting rules in place.
He added that fake wallets have been found on the Google Play Store and are frequently replicated to appear legitimate. Once the wallet is loaded, the cash is removed, leaving the wallet empty.