Is Bitcoin legal in Nigeria?
Is bitcoin legal in Nigeria? This is a popular question in the cryptocurrency world in Nigeria. Many people think bitcoin is illegal and is something one should keep away from.
But is bitcoin really illegal? Well to answer this question, No, bitcoin is not illegal in Nigeria and although bitcoin is not regarded as a legal tender by the central bank of Nigeria (i.e. bitcoin is seen as a means of payment for goods and services in Nigeria), it does not stop one from buying and conducting transactions with bitcoin.
There is no official ban or restrictions on the use of bitcoin in Nigeria. There has also been no regulation by the government that declares bitcoin illegal.
Although bitcoin is not a legal tender, you can still buy bitcoin on exchanges and carry out transactions with them.
As far as I know, no one is going to come to your house to arrest you, if you are dealing on bitcoin, except maybe you are into something really shady.
The security exchange commission (SEC) has warned the general public to be very careful in making bitcoin related investments. The official SEC statement read:
“The attention of the Securities and Exchange Commission has been drawn to radio advertisements and other modes of solicitations of the public to invest in cryptocurrencies such as Swisscoin, OneCoin, Bitcoin and other such virtual or digital currencies. The public is hereby advised to exercise extreme caution with regard to digital (cryptocurrencies) as a vehicle of investments.”
The central bank of Nigeria made it known to the public in 2017 that all financial institutions should not carry out any transactions with bitcoin or any of the other virtual currencies.
This means that you can’t use bitcoin in the banks or other financial institutions or any virtual currency for that matter.
Now that you know about the legality of bitcoin in Nigeria, let me tell you a little bit about bitcoin and why you should consider using it to carry out transactions.
What is bitcoin?
Bitcoin was created by a software developer Satoshi Nakamoto in 2008, the identity of Satoshi Nakamoto till this day is unknown, the idea was to produce a means of exchange which will not be controlled by a central authority, but at the same time was secure.
Bitcoin is often credited as the world’s first cryptocurrency.
Bitcoin(BTC) is a decentralized digital currency, this means that transactions can be carried out between two different people without passing through a central authority like the banks.
Why should I buy or invest in bitcoin?
Bitcoin ever since it gained popularity has been on the rise, early adopters of the cryptocurrency have been smiling to the bank.
According to experts, bitcoin will continue to rise in price and as more people and companies continue to adopt/accept it, the value will only rise.
Bitcoin has a lot of advantages over the normal fiat currency that has made many believe that it is a future currency.
For one, bitcoin is decentralized. This means that no one organization or body controls bitcoin, and also two people can transact without going through the banks.
Bitcoin also allows for anonymity of the people who use it i.e. you can transfer funds without revealing your identity to anyone. As you can see, there are many reasons why one would want to invest/buy in bitcoin.
How do I buy bitcoin?
You can buy bitcoin on exchanges, some of these exchanges are just platforms for you to meet people who want to sell their bitcoin at a particular rate, while some are direct exchanges (this means that they have in stock, the amount of bitcoin you need to buy).
There are local exchanges for you to buy bitcoin like Nairaex, naira4dollar and also foreign exchanges like coinbase etc. Whichever exchange you choose will depend on your own preference.
Where can I buy bitcoin in Nigeria?
Like I earlier stated, you can buy bitcoin on either local exchanges or foreign exchanges. Some of the exchanges to buy bitcoin are:
Luno formerly known as bitx is a cryptocurrency exchange where you can buy bitcoin, ethereum and bitcoin cash. Although some people have complained about luno’s charges, it is a very good platform to buy bitcoin.
You can read my full luno review
Coinbase is a foreign exchange where you can buy bitcoin from, coinbase is one of the biggest cryptocurrency exchange in the world. With coinbase you can buy bitcoin using any of the available payment methods.
You can read my full coinbase review
Naira4dollar is a local Nigerian exchange where you can buy bitcoin safely. Naira4dollar is one of the oldest exchange in Nigeria and has fulfilled a lot of orders.
With naira4dollar, you can buy bitcoin safely in Nigeria using any of the available local payment methods that is accepted.
You can read my full naira4dollar review
Localbitcoins is a peer to peer exchange that lets you buy bitcoin from people who are in close proximity to you. With localbitcoins, you can buy bitcoin with many different payment methods including gift cards.
You can read my full localbitcoins review
Naira2usd is another local Nigerian exchange where you can buy bitcoin in Nigeria and pay using any of the available local payment methods available on the platform. Naira2usd is a trusted platform to by bitcoin.
You can read my full naira2usd review
There are numerous other exchanges to buy bitcoin in Nigeria, you can pick from any of the trusted exchanges to buy from. Each of these exchanges have their pros and cons, make sure you read my reviews on most of the popular exchange to buy bitcoin from.
With this post, you should now have the answer to the question “is bitcoin legal in Nigeria?”. There is no official legal law that stops you from using bitcoin in Nigeria and although bitcoin is not a legal tender in Nigeria, there are many platforms where you can use bitcoin to carry out transactions.
If you have questions and comments, you can leave them below.
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Read my post on how to make money with bitcoin in Nigeria
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