Title: Legal issues and risks associated with cryptocurrency (in Nigeria): regulation for use and integration for its possibilities

Authors: Matthew O. Gidigbi; Gbenga F. Babarinde; Olusegun Adegoke Adewusi; Ibukunoluwa Akinrinde

Addresses: Department of Economics, Faculty of Social and Management Sciences, Modibbo Adama University, P.M.B. 2076, Yola 640001, Nigeria ' Department of Banking and Finance, Modibbo Adama University, Yola, Nigeria ' Department of Economics, Modibbo Adama University, Yola, Nigeria ' Nigerian Economic Summit Group's (NESG) 6 Oba Elegushi Rd, Ikoyi 101233, Lagos

Abstract: FinTech inspired many initiatives and innovations in the provision of financial services. FinTech was accolade as an aiding tool in improving financial inclusion. FinTech as coined has another side from which digital currency evolved. The advent of digital finance (such as cryptocurrency) excited the crypto-arbitrageurs due to the gain in wealth without considering the legality and risks associated with its transactions. Meanwhile, making cryptocurrency a store of value and/or speculating with it, may cart away huge investible fund from individuals and the economy at large. There are many more risks associated with cryptocurrency. Therefore, there is a need for regulation of the cryptocurrency towards protection and harnessing the generative potential of the currency. Meanwhile, the approach should be gain-gain by the way of regulation for use and integration of the cryptocurrency possibilities towards the provision of efficient and effective (financial) services in all sectors.

Keywords: cryptocurrency; FinTech; risks; financial services; digital currency; regulation; blockchain.

DOI: 10.1504/IJBC.2021.120372

International Journal of Blockchains and Cryptocurrencies, 2021 Vol.2 No.4, pp.320 - 338

Received: 30 Jul 2020
Accepted: 09 Apr 2021
Published online: 18 Jan 2022 *

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