• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Opinions Op-Eds

The cryptocurrency frenzy; A call for caution

CSL Stockbrokers by CSL Stockbrokers
July 7, 2021
in Op-Eds, Opinions
Crypto, Categories in the Cryptocurrency Market

Montreal, Canada - 28 February 2018: Stacked cryptocurrency coins (Bitcoin, Ethereum, Litecoins)

Share on FacebookShare on TwitterShare on Linkedin

A recent news report says an increasing number of Nigerian youths are investing in cryptocurrencies despite a financial regulatory restriction imposed on dealings in the digital currencies by the Central Bank of Nigeria (CBN) in February and the recent crash that saw Bitcoin, the flagship asset, losing over 50% in value.

According to the report, data from Usefultulips.org, analytics that tracks trading on local Bitcoins and Paxful, revealed that the volume of transactions from Nigeria has increased by roughly 50% between February (when the CBN banned financial institutions from handling cryptocurrencies) and June. In 2020, according to a report published by TechPoint Africa, c.US$400m worth of cryptocurrencies were traded in Nigeria.

Despite the many benefits associated with the use of cryptocurrencies such as speed, anonymity and accessibility, the opacity of cryptocurrencies that have made them become well-suited for conducting many illegal activities such as money laundering, terrorism financing, purchase of small arms and light weapons, and tax evasion makes them unacceptable by many monetary authorities.

RelatedStories

SEC warns Nigerians against investing in Risevest and Stecs  

SEC imposes three-year cooling-off for CEOs seeking chairman roles 

June 21, 2025
SEC warns Nigerians against unregistered trading platform CMTrading 

SEC warns Nigerians against unregistered trading platform CMTrading 

June 21, 2025

Unlike fiat money which is accompanied by full faith and comfort of a country or Central Bank, cryptocurrencies do not have any intrinsic value and do not generate returns by themselves and are highly volatile. These reasons informed the decision of the CBN in February 2021, to stop financial institutions in Nigeria from allowing their platforms to be used for cryptocurrency transactions.

We note that the rising number of Nigerians patronizing cryptocurrencies reflects the dearth of high yielding investment options amidst a significant decline in the purchasing power of households. Recently, the World Bank highlighted that 7 million Nigerians were pushed into poverty by the continued rise in consumer prices (especially food), implying that investments in potentially high yielding ventures such as cryptocurrencies, despite associated risks will continue. For crypto exchanges, players have leveraged the use of Peer to Peer (P2P) for
settling cryptocurrency trades and activities have continued unabated in the space.

The unusual volatility of these currencies however calls for caution. Recently, Elon Musk, CEO of Tesla Motors was reported to have advised that investments in cryptocurrencies should be made from the place of comfort, and funds like life savings should not be invested in cryptocurrencies due to its volatility. Bitcoin has traded between US$24,000 and US$38,000 in the past weeks. At the height of the bull run, it rose to c.US$63,000 before a sudden drop which resulted in about a 50% decline in value. Some other coins have lost more than 70% in value.

The Nigerian Securities and Exchange Commission (SEC) had in September 2020 released a publication highlighting how cryptocurrencies should be treated, thereby providing a framework for holding them as a digital asset in Nigeria. We believe that the initial step should be followed by further investor education and more intense regulatory oversight.


CSL Stockbrokers Limited, Lagos (CSLS) is a wholly owned subsidiary of FCMB Group Plc and is regulated by the Securities and Exchange Commission, Nigeria. CSLS is a member of the Nigerian Stock Exchange.

Tags: CryptocurrenciesSECSecurities and Exchange Commission
CSL Stockbrokers

CSL Stockbrokers

Related Posts

SEC warns Nigerians against investing in Risevest and Stecs  
Business News

SEC imposes three-year cooling-off for CEOs seeking chairman roles 

June 21, 2025
SEC warns Nigerians against unregistered trading platform CMTrading 
Cryptos

SEC warns Nigerians against unregistered trading platform CMTrading 

June 21, 2025
SEC warns Nigerians against investing in Risevest and Stecs  
Legal & Regulations

SEC warns against Zugacoin and Samzuga GPT, says they are not licensed in Nigeria 

June 18, 2025
SEC warns Nigerians against investing in Risevest and Stecs  
Cryptos

SEC to launch ‘Crypto Smart, Nigeria Strong’ initiative for stablecoin regulation 

June 16, 2025
NGX Group, SEC pursue capital market diplomacy to deepen Nigeria-China financial ties 
Corporate Updates

NGX Group, SEC pursue capital market diplomacy to deepen Nigeria-China financial ties 

June 15, 2025
SEC warns Nigerians against investing in Risevest and Stecs  
Business News

SEC issues fresh warning as CBEX resumes operations in Nigeria two months after crash 

June 11, 2025
Next Post
Top 10 stockbroking firms trade N1.35 trillion on stocks in 2019, Nigerian stockbrokers facing extinctionBanking stocks lay anchor on the shaky waters of Nigerian Stock Market, Nigerian banking stocks ignore red flags, boost nigeria stock market, stock market

Top 10 stockbroking firms in Nigeria traded stocks worth N541.2 billion in H1 2021

Comments 1

  1. Kabiru says:
    July 7, 2021 at 3:25 pm

    Up to 40% ACCA

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Emple
nlng
first bank
Zenth Bank








DUNS

Recent News

  • Tinubu seeks swift action on ECOWAS Standby Force as insecurity escalates in West Africa 
  • Global oil price may surge past $150 per barrel as Iran’s parliament approves closure of Strait of Hormuz 
  • President Trump’s visa restrictions threaten 16 U.S. colleges depedent on international students 

Follow us on social media:

Recent News

Tinubu seeks swift action on ECOWAS Standby Force as insecurity escalates in West Africa 

Tinubu seeks swift action on ECOWAS Standby Force as insecurity escalates in West Africa 

June 22, 2025
Latest crude oil price drop threatens Nigeria’s revenue and naira stability 

Global oil price may surge past $150 per barrel as Iran’s parliament approves closure of Strait of Hormuz 

June 22, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics