INVESTIGATING THE LEGAL REGIME OF BLOCKCHAIN AND CRYPTOCURRENCIES IN NIGERIA

Abstract

The world is witnessing very fast developments in all spheres of human endeavour and has, in fact, become a global village. These tremendous developments are occasioned by swift and unending growth in technology and part of these developments is the emergence of the blockchain technology (BT). As it is in other parts of the world, BT is fast evolving in Nigeria and is fast disrupting the traditional financial system because it has ushered in a new type of currency called ‘digital or virtual currency’, which differs from the traditional currency, and is now a subset of alternative currencies. Despite the rapid acceptance of this digital currency in Nigeria, the existence of a legal framework for its provision, adoption, circulation and usage, as an alternative currency, is circumspect. It is against this background that this work seeks to explore the genesis of cryptocurrencies and their incursion into Nigeria’s financial market and general business environment. The work, consequently, appraises existing legal framework on trade and commercial transactions, especially, as they pertain to BT and cryptocurrencies in Nigeria and some select foreign jurisdictions and concludes that there is urgent need for the enactment of a broad-based law for consumers’ protection, state security, insulation against economic sabotage and general control of the provision, adoption, circulation and usage of cryptocurrencies in Nigeria, in line with international monetary best practices.

Keywords: Blockchain, Cryptocurrency, Technology, Alternative Currency, Legal Framework