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Tag: Cryptocurrency

  • Argentine president under impeachment threat for promoting cryptocurrency

    Argentine president under impeachment threat for promoting cryptocurrency

    Argentine President Javier Milei is facing impeachment calls – and legal action accusing him of fraud – over his promotion of cryptocurrency on social media.

    Milei posted on X, formerly Twitter, about the $LIBRA coin on Friday, which he said would help fund small businesses and start-ups.

    He shared a link to buy it, causing its price to shoot up. But within a few hours, he deleted his post and the cryptocurrency nosedived in value, losing investors most of their money.

    Some opposition members of Congress say they plan to start proceedings to impeach Milei. Meanwhile, lawyers filed complaints of fraud in Argentina’s criminal court on Sunday.

    Some people online have accused Milei of what is known as a “rug pull” – where promoters of a cryptocurrency draw in buyers, only to stop trading activity and make off with the money raised from sales. They pointed out that the link used to buy the coins referenced a phrase the president uses in his speeches.

    But Argentina’s presidential office said on Saturday that the decision to remove the post was to avoid “speculation” following public reaction to the launch of the cryptocurrency.

    It said Milei was not involved in the cryptocurrency’s development, and that the government’s Anti-Corruption Office would investigate and determine whether anyone had acted improperly, including the president himself.

    Jonatan Baldiviezo, one of the plaintiffs who filed the legal action, told Associated Press “the crime of fraud was committed, in which the president’s actions were essential”.

    Milei’s political opponents have jumped on the opportunity.

    Former President Cristina Fernández de Kirchner, who is now in opposition, was heavily critical, calling him a “crypto scammer” in a post seen 6.4 million times.

    For its part, the country’s main opposition coalition said it would file a request to impeach the president, calling it an “unprecedented scandal”.

    Esteban Paulón, a member of the opposition Socialist Party, said in a post on X that he would also request the start of impeachment proceedings.

  • SEC officially accepts two cryptocurrency firms to operate in Nigeria 

    SEC officially accepts two cryptocurrency firms to operate in Nigeria 

    The Securities and Exchange Commission (SEC), has officially granted operational approvals to several crypto operators, indicating an acceptance of the digital currency.

    On Thursday, the SEC announced that it had granted approval-in-principle to two Digital Asset Exchanges to begin operations under its Accelerated Regulatory Incubation Program (ARIP). Five firms were also admitted to test their models and technology under its Regulatory Incubation Program.

    The approved firms include Busha Digital Limited, Quidax Technologies Limited, Trovotech Ltd, Wrapped CBDC Ltd, HousingExhange.NG Ltd, Dream City Capital, and Blockvault Custodian Ltd.

    The ARIP was introduced by the SEC to onboard firms that had already begun operations before the release of the Rules on Virtual Asset Service Providers in May 2022. The RI Program was designed to evaluate the business models of digital asset firms and allow them to test their products, services, and technology in a real-world market environment under the regulator’s close supervision.

    This latest development follows a recent announcement by Zacch Adedeji, chairman of the Federal Inland Revenue Service (FIRS) that the government is drafting an executive bill to overhaul revenue administration, including regulating the cryptocurrency industry.

    “We need a law that regulates that area of our economy. This is why we are having this engagement with the legislators. We will regulate it in a way that is not injurious to the economic development of Nigeria,” he stated.

    SEC’s approvals come despite a series of crackdowns on the crypto sector earlier in 2024, following the lifting of a ban on official crypto transactions in December 2023. The government had targeted crypto operators, blaming them for the naira’s volatility, tax evasion, and terrorism financing.

    The SEC emphasised that these approvals are a precursor to granting full registrations and aim to ensure appropriate protection and transparency. With these approvals, Busha Digital Limited and Quidax Technologies Limited have become the country’s first ‘licensed’ crypto operators.

    “I am pleased to announce that Busha has been granted one of the first provisional licenses from the Nigerian Securities and Exchange Commission to operate as a regulated Virtual Asset Service Provider,” tweeted Michael Adeyeri, Busha’s chief executive officer.

    He noted that the firm had been engaged with the process for over five years, ensuring their systems prioritised security and compliance.

     

  • Two cryptocurrency firms granted approval to operate in Nigeria

    Two cryptocurrency firms granted approval to operate in Nigeria

    The Securities and Exchange Commission (SEC) has granted two  digital assets Exchanges “Approval-in-Principle” to commence operation under the Accelerated Regulatory Incubation Program (ARIP). Ms Efe Ebelo, the spokesperson of the commission announced this in a statement on Thursday in Lagos.

    According to Ebelo,  the companies that were granted the approval are Busha Digital Ltd., and  Quidax Technologies Ltd. She  said  that the approval-in-principle was in furtherance of SEC’s commitment to enabling innovation that would deepen the capital market while guaranteeing the protection of investors.

    She said that the cohort comprises of two digital asset exchanges, four digital asset offering platforms and one digital asset custodian.

    “Busha operates a digital exchange that facilitates the buying and selling of crypto assets with fiat currency. It enables individuals and businesses in Nigeria and other developing economies to access basic digital asset investment services.

    “Busha’s customers use the mobile and web applications to buy, sell, store, send, receive, trade, invest and make payments in cryptocurrencies,” she said.

    The  spokesperson said that Quidax Technologies operated a cryptocurrency trading platform in Nigeria

    “The platform leverages blockchain technology to list and trade already issued crypto tokens (assets). The services are provided via a proprietary blockchain owned and controlled by Quidax,” she  said.

    According to her, the exchange platform is both web and mobile enabled for ease of access and use. She said Quidax also utilised digital wallet to enable its users store, receive and transact in variety of cryptocurrencies.

    Similarly, Ebelo onfirmed that five firms had been admitted to test their models and technology under the commission’s Regulatory Incubation(RI) Programme. She listed the companies as Trovotech Ltd., Wrapped CBDC Ltd., HousingExhange.NG Ltd., Dream City Capital and Blockvault Custodian Ltd.

    She said that the commission recently introduced ARIP to “strategically on-board firms” which had commenced operations prior to the release of the Rules on Virtual Asset Service Providers in May 2022.

    According to her, the current cohort of the ARIP and the RI programmes is characterised by the increased use of distributed ledger technology (“DLT”) in creating and trading crypto assets

    She added that the outcome of the process would inform further policy development in the space.

    She said that tests would be conducted on a short-term and small-scale basis,  and the commission would continue to work with the participating firms to agree on testing parameters and robust consumer safeguards.

    “The referenced approvals-in-principle are a precursor to the granting of full registration by SEC and are meant to ensure that appropriate protection and transparency is in place in respect of each product or service.

    “It is noteworthy that the above firms are not the only entities that have applied to ARIP and the RI programmes. Other applications received are being assessed and would be granted approval-in-principle on a case-by-case basis as they meet all SEC requirements,” she said.

    Ebelo, however, reiterated that only approved digital exchanges and platforms are legally authorised to carry out the business of crypto trading in any form in Nigeria.

    She said that in this regard, ARIP and RI remained the only avenues for well-intentioned entities to legitimately introduce their digital products and services to the Nigerian capital market.

    She advised the public to refrain from dealing with illegal operators who had not applied to and received SEC’s approval under the ARIP or the RI programme.

    “Intending investors are also reminded to always confirm from various SEC information portals whether entities purporting to provide investment services are legally empowered to so do,” she said.

  • You can’t stop Nigerians from trading in crypto – Senate

    You can’t stop Nigerians from trading in crypto – Senate

    The Senate Committee on Capital Market on Monday called for the regulation of Cryptocurrency to ensure some level of accountability and protection of investor’s fund.

    Chairman of the Committee, Sen. Osita Izunaso said this when he briefed newsmen in Abuja after the committee’s screening of Dr Emomotimi Agama, the newly appointed Director-General of the Securities and Exchange Commission (SEC) and three executive commissioners behind closed-door.

    “The issue of cryptocurrency must be regulated because Nigerians are trading in crypto.

    “Since Nigerians are trading in crypto, why are we not regulating it. Where is the money going to if we don’t regulate  activities in the crypto market.

    “You can’t stop them from trading in the crypto market. So because we can’t stop them, you have to regulate it,” he said.

    He also said that investing in stock exchange and capital market would help to boost Nigeria’s economy.

    “President Bola Tinubu has told Nigerians that he is looking for a  N1 trillion economy. That can only be done through the  stock exchange, through the capital market.

    “And I believe that we are going to see more of government activities in stock exchange, in capital market, in commodities exchange, in crypto.

    “This is because these are the areas that will further inject money into the system.

    “Because the problem we have is the problem of liquidity. We don’t have enough money, we don’t have enough liquidity in the system,” he said.

    He added:“That is what is crushing the naira and making the naira so little when it’s competing with other currencies. But if we develop our capital market, develop our crypto market, we will bring more liquidity into the system.

    “That will help to cushion all the problems we have.”

    Also speaking, Agama, promised to accelerate  development of the capital market in a manner that would boost wealth creation, attract investments and create jobs for Nigerians.

    “We are bringing on board innovation, development. We are going to change the narrative of the Nigerian capital market.

    “We are going to turn it around. That is the essence of our appointment by President Bola Tinubu. With this team, we assure Nigerians that we’re going to do the best that the President has the desire to do.

    “So, we should all wait to see what is going to happen. Our desire is to move this market forward. And to help in achieving the President’s N1 trillion economy in the shortest possible time.

    “Yes, the President is going to be a year in office in a few days. That is remarkable because as an anniversary giver, the President has given us to Nigerians to do the best to change the market,” he said.

    Agama also said  that the commission would introduce innovations programmes that would create world-class companies in such a way that would ensure redistribution of wealth.

  • After Binance, Reps go all out against IMTOs, P2P marketplace

    After Binance, Reps go all out against IMTOs, P2P marketplace

    The House of Representatives has resolved to investigate the national security implications of the current status of cryptocurrency, blockchain, and other digital asset transactions.

    This followed the adoption of a motion by Rep. Isiaka Ibrahim (APC-Ogun), during plenary in Abuja.

    Moving the motion, Isiaka said that the growing global concerns about the national security implications of cryptocurrency transactions through cryptocurrency exchanges including consumer and investor security.

    He said these exchanges enable money laundering by criminals and terrorists for their illicit activities.

    Adopting the motion, the House said it would investigate international money transfer operators, payment gateways and platforms, cloud computing.

    Others include: infrastructure (networks) and all online peer-to-peer (P2P) marketplace, utility sharing based platforms and their practices, in Nigeria.

    The lawmakers said the investigation would identify threats to national security and gaps in legislative framework, statutes, and regulations to the detriment of the country.

    The House said that the current status of the E-Naira on the global cryptocurrency platform, the cost incurred, processes undertaken, and statutory compliance in creating the digital currency would also be investigated.

    The House also resolved to engage all relevant stakeholders to initiate necessary processes for establishing required legislation and regulations.

    The lawmakers said that the profile of operators in the sector such as legal status, parent company, and access to their compliance with existing statutes should be unraveled.

    The House said that their complicity in infractions against Nigeria including money laundering, illicit transactions, currency speculation and bad practices would be looked into.

    The House also resolved to superintend the engagement of the office of the National Security Adviser and other relevant agencies, cryptocurrency exchanges in tracking and recovering illicit and laundered funds or assets.

    The lawmakers said they will ensure that equity, probity, transparency, the rule of law, and international best practices were observed by the government in investigating cryptocurrency exchanges and others.

    The House  referred the matter to the committee on National security and Intelligence to report back to the House for further deliberations.

  • Real reason CBN lifted ban on cryptocurrency

    Real reason CBN lifted ban on cryptocurrency

    The Central Bank of Nigeria (CBN) has lifted the  ban it imposed two years ago on cryptocurrency transactions in the Nigerian banking system.

    The CBN announced the reversal of the policy in a circular by Haruna Mustapha, its Director, Financial Policy and Regulation.

    Mustapha said that the apex bank would now provide regulations for financial institutions on how to manage cryptocurrency to avoid misuse.

    Recall CBN issued a circular in February 2021, restricting banks and other financial institutions from operating accounts for cryptocurrency service providers.

    The then CBN Governor, Godwin Emefiele, had announced that the restriction was necessary in view of the money laundering and terrorism financing risks posed by cryptocurrency.

    Emefiele also said that the vulnerability inherent in cryptocurrency operations, as well as the absence of regulation and consumer protection measures were also responsible for the policy.

    According to Mustapha, current global trends have shown that there is need to regulate the activities of Virtual Assets Service Providers (VASPs) which include cryptocurrencies and crypto assets.

    “Following this development, the Financial Action Task Force (FATF) also updated its recommendation to require VASPs to be regulated, to prevent misuse of virtual assets.

    “In view of the foregoing,  the CBN hereby issues this guidelines to provide guidiance to financial institutions under its regulatory purview in respect of their relationship with VASPs in Nigeria.

    “The guidelines supersedes the CBN circular of Feb. 5, 2021on the subject,” the director said.

    He, however, warned that banks and other financial institutions were still prohibited from holding, trading or transacting in cryptocurrencies on their own account.

  • Twitter changes logo to Dogecoin and Elon Musk explains why

    Twitter changes logo to Dogecoin and Elon Musk explains why

    Twitter changed its traditional blue bird logo Monday morning to mimic the logo of a popular cryptocurrency – an image of a dog that featured in viral memes.

    The microblogging platform’s homepage and loading screen was replaced with the shiba inu image associated with the Dogecoin memecoin cryptocurrency.

    The logo change has caused the dogecoin (DOGE), which is the eighth largest cryptocurrency by market capitalization to surge by 30 per cent.

    Twitter’s original blue bird logo is called “Larry T Bird,” and it was inspired by NBA legend and Hall-of-Famer Larry Bird.

    There was no formal announcement of the logo change, and people suspected Elon Musk was behind it due to his fondness for the famous Shiba Inu meme.

    Musk joked about the logo change by sharing a meme that has more than 586, 000 likes and 71,000 retweets.

    Then, in another tweet, he shared a screenshot of an old conversation with a user who asked him to “buy Twitter and change the bird logo to a doge”. He said in the tweet it’s done “as promised”.

    It is, however, uncertain how long the Doge logo will last as the change has been met with mixed reactions and has become a topic of conversation on the platform.

    The logo change also comes at a time when blue checkmark verifications may disappear for Twitter users who do not pay a fee.

  • Gov Okowa faults FG for banning cryptocurrency

    Gov Okowa faults FG for banning cryptocurrency

    Delta State Governor Ifeanyi Okowa has faulted the federal government for banning cryptocurrency in the country, saying it should have been studied and Nigerians advised about it.

    Recall that the federal government, through the Central bank of Nigeria (CBN) in 2021 placed a ban on cryptocurrency trading in the country.

    The CBN said the directive became necessary to protect the financial system and the generality of Nigerians, including the youth population, from the risks inherent in crypto assets transactions.

    The regulator claimed the risks have escalated in recent times and have dire consequences for the integrity of the financial system and financial stability.

    However, Governor Okowa, who is the vice presidential candidate of the People’s Democratic Party (PDP) for the 2023 elections stressed instead of outrightly banning cryptocurrency, it should have been studied and Nigerians educated about it given its unlimited potential for job creation and economic growth.

    “I do not think the right thing to have done was to do a ban. What they needed to do was to study the situation then and educate our people more on it and put in regulatory processes that are workable and beneficial to our people and the government,” Okowa said.

  • China declares cryptocurrency transactions illegal

    China declares cryptocurrency transactions illegal

    China’s central bank on Friday said all financial transactions involving cryptocurrencies are illegal, sounding the death knell for digital currencies in China after a crackdown on the volatile trade.

    The global values of cryptocurrencies including Bitcoin have massively fluctuated over the past year partly due to Chinese regulations, which have sought to prevent speculation and money laundering.

    “Virtual currency-related business activities are illegal financial activities,” the People’s Bank of China (PBOC) said in an online statement Friday, adding that offenders would be “investigated for criminal liability in accordance with the law.”

    The notice bans all related financial activities involving cryptocurrencies, such as trading crypto, selling tokens, transactions involving virtual currency derivatives and “illegal fundraising”.

    The central bank said that in recent years the “trading and speculation of Bitcoin and other virtual currencies have become widespread, disrupting economic and financial order, giving rise to money laundering, illegal fund-raising, fraud, pyramid schemes and other illegal and criminal activities.”

    In June, Chinese officials said more than 1,000 people had been arrested for using the profits from crime to buy cryptocurrencies.

    Several Chinese provinces had already banned the operation of cryptocurrency mines since the start of this year, with one region accounting for eight percent of the computing power needed to run the global blockchain — a set of online ledgers to record bitcoin transactions.

    Bitcoin values tumbled in May on the back of a warning by Beijing to investors against speculative trading in cryptocurrencies.

  • CBN reacts to Osinbajo’s counsel on regulation of cryptocurrency

    CBN reacts to Osinbajo’s counsel on regulation of cryptocurrency

    The Central Bank of Nigeria (CBN) has acknowledged the counsel of Vice – President, Prof. Yemi Osinbajo, in support of the regulation of digital currencies.

    TheNewsGuru.com, TNG reports that the apex bank had earlier ordered commercial banks to restrict cryptocurrencies related transactions.

    TNG reports that the Vice President on Friday said there is a role for regulation whereby both the monetary authorities and the security and exchange commission would “provide a robust regulatory regime that addresses these serious concerns without killing the goose that might lay the golden eggs.”

    Acknowledging Osinbajo’s knowledge-based advise on cryptocurrency, the CBN via its official twitter handle, @cenbank, noted that VP’s advice is so as to ensure that they are in a position to prevent any of the adverse side effect or even possible criminal acts that may arise as a consequence of adopting blockchain technology.

     

    The tweet reads “#Osinbajo advises #CBN to put in place a thoughtful & knowledge based regulation, cautioned on the need to ensure that we are in a position to prevent any of the adverse side effects or even possible criminal acts that may arise as a consequence of adopting blockchain technology.

    “The banking sector plays a crucial role in promoting increased & inclusive growth in Nigeria, VP #Osinbajo commended #CBN for the forward looking support for growth related initiatives, especially under the economic sustainability plan.

    “The VP #Osinbajo also commended the DMBs for their patriotic contributions to sustain growth but called for the need to further deepen the provision of capital that would allow businesses to grow over the long term.”