March 23, 2023

Examining the Possibilities and Difficulties of Governing Cryptocurrencies

  • Nigeria’s Central Bank Crypto Regulations
  • Zambia’s Central Bank Digital Currency (CBDC)
  • Protecting Investors California Regulator Crypto Scam Tracker Launch

Nigeria’s Central Bank Crypto Regulations

According to the CBN (Central Bank of Nigeria), cryptocurrency regulations would be implemented by the banking body to encourage the acceptance and use of cryptocurrencies there. However, it is worth noting that the Central Bank of Nigeria forbade transactions involving cryptocurrencies in the nation’s banking system on February 5, 2021.

The Central Bank of Nigeria has stated its intention to investigate the feasibility of developing a regulatory framework that would permit the usage of stablecoins in the nation, according to the “Nigeria Payments System Vision 2025” paper.

The paper indicates a possible change from the bank’s prior position on cryptocurrency. Also, the Central Bank of Nigeria has declared that, on the occasion that an ICO-based investment solution is accepted, it will closely monitor Initial Coin Offerings (ICOs) and work with the Securities and Exchange Commission (SEC) to establish a set of regulations.

The future establishment of regulations shows that the bank is approaching the potential use of cryptocurrencies and associated technology in Nigeria with caution but initiative.

Zambia’s Central Bank Digital Currency (CBDC)

According to Felix Mutati, a minister in the Zambian government, the Bank of Zambia and the nation’s securities authorities are now evaluating technology to control cryptocurrency. Mutati lauded cryptocurrency as a ground-breaking technology that exemplifies what Zambia wants from its future.

Additionally, Mutati noted that as part of initiatives to support an “inclusive digital economy” in Zambia, testing of the regulatory technologies for cryptocurrencies will soon be broadened. The minister also mentioned that the nation is aggressively building the facilities required to achieve its goal of becoming a regional technological center.

When the infrastructure for digital transactions is established, the minister sees a time when cryptocurrencies act as a catalyst for financial inclusion and power the transformation of Zambia’s economy.

Accordingly, Zambia wants to expand financial inclusion by introducing a central bank digital currency (CBDC), currently under development, in conjunction with using cryptocurrencies. The Bank of Zambia has been investigating the benefits and drawbacks of a CBDC and was anticipated to finish its review by the end of last year.

California Regulator Launches to Protect Investors Crypto Scam Tracker

With the turn of events involving fraudulent activities in the cryptocurrency world, many law enforcement and authorities have been brainstorming various strategies to protect crypto traders and curb the high crime rate.

The California DFPI (Department of Financial Protection and Innovation) has made tremendous progress by introducing a new cryptocurrency scam tracker to address these challenges. In addition, on February 16, DFPI made a milestone in curbing fraudulent activities by introducing a security measure called zDFPI.

zDFPI tool is a scam tracker established using several consumer reports from those who have encountered suspected hacks or defrauded victims. The majority of the complaints recorded in the tracker, according to the DFPI, included social networking sites and socially engineered frauds.

The con artists tricked people into completing certain actions via TikTok, dating apps, Facebook, Instagram, and WhatsApp. Scammers prey on vulnerable Californians by taking advantage of their curiosity about cryptocurrencies, according to a statement released by the DFPI’s Commissioner, Clothilde Hewlett.

Hewlett said that the DFPI is actively striving to uncover these fraudulent practices and protect customers by identifying these offenders using the recently announced crypto scam tracker and other strong enforcement tools.

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