Nigeria to Study Bitcoin Proliferation

The Senate urged the regulators to issue clear statements in all the dialects spoken in Nigeria about the dangers of storing value with cryptocurrency
02 February 2018   832

The Senate of Nigeria has asked the Central Bank of Nigeria (CNB) and other regulators to investigate the proliferation of bitcoin and to educate citizens about the possible dangers of the cryptocurrency.

The lawmakers asked the CBN, the Nigeria Deposit Insurance Corporation (NDIC) and the Nigerian Stock Exchange (NSE) to launch a campaign against the risks of trading bitcoin. The Senate urged these institutions to issue clear statements in all the dialects spoken in Nigeria about the dangers of storing value with cryptocurrency.

Much of the lawmakers’ fears are based on recent events after Mavrodi Mundial Moneybox (MMM), a Russian ponzi scheme, became popular in Nigeria snapping up over two million users. Nigeria’s central bank estimates that users lost $50 million.

Meanwhile, bitcoin trading in Nigeria has skyrocketed with weekly bitcoin trade volume surpassing 1 billion nairas ($2 million) in August 2017 on LocalBitcoin, a global bitcoin exchange.

Weekly bitcoin trade volume in Nigeria on LocalBitcoinWeekly bitcoin trade volume in Nigeria on LocalBitcoin

We have recently reported that Hong Kong launched a public education campaign to raise awareness of the potential risks of investing in ICOs and buying cryptocurrency.

SEC May Approve BTC ETF in 2019

This thought was told by Bill Barhydt, chief executive of bitcoin payment start-up Abra
05 September 2018   414

In an interview with CNBC, the head of Abra, Bill Barhydt, said that the SEC had not yet approved the bitcoin-ETF because the initiators of the launch of these funds "do not meet the expectations" of the agency.

I think the issue with the SEC, quite frankly, is that the people who are doing the applications don't fit mold of who the SEC is used to approving. I used to work for Goldman Sachs, but if you look at how I'm dressed you probably wouldn't know it. So I probably, unfortunately, couldn't go like I am here to a meeting at the SEC to say I'm applying for the ability to issue an ETF.

Bill Barhydt

CEO, Abra

According to Barhydt, the applicant must "look, smell and behave" as the SEC wants to approve the application. He also believes that the application for the launch of ETF from a reputable financial company will be approved rather than from a start-up.

He also expressed confidence that the first publicly cryptocurrency ETF will appear next year.

It's going to happen in the next year, I would actually make a bet on it. There is too much demand for it.

Bill Barhydt

CEO, Abra

In late August, the SEC rejected an application for the ProShares Bitcoin ETF and ProShares Short Bitcoin ETF. At the same time, a similar fate awaited several applications for the launch of Bitcoin-ETF from Direxion and GraniteShares.