Despite the Nigerian government's ban on cryptocurrency trading, many traders have been steadily increasing their cryptocurrency trading volumes.

As of July 2018, Nigeria was the fifth largest country for trading in cryptocurrency markets after China, Japan, South Korea, and the US. This is just one example of how technological advances have brought about a growing interest in cryptocurrencies.

Nigeria’s Trading Volume Has Been Rising Despite the Government’s Ban on Cryptocurrency

Because there's no exchange, many people in the country are turning to other methods to convert their crypto into cash. The ban has not stopped them from trading, though: according to data provider Coindesk, the cryptocurrency value trading volume has risen by nearly 60% since the ban was instituted.

The rising trade volume might be good news for those trying to trade crypto in Nigeria—but it's also part of a broader global trend toward legal and regulated crypto markets. In December 2017, Indonesia passed legislation that allowed cryptocurrency exchanges to operate under licenses issued by government bodies.

Not long after, China and Vietnam banned all initial coin offerings—essentially token sales that provide investors with newly minted tokens—and established laws meant to ensure they didn't allow money laundering or terrorist financing tactics like extortion through cryptocurrencies.

The Country’s Tightening Foreign Exchange Restrictions Have Also Contributed to the Rise of Crypto Trading Volumes in the Country

In Nigeria, one of the world's most important oil-producing countries, the naira has been highly volatile against currencies such as the US dollar and euro. This rampant fluctuation makes buying and selling foreign currency tricky and expensive.

As a result, many Nigerians have turned to exchange platforms that allow them to buy and sell other currencies—as well as for cryptocurrencies—for a fraction of their value due to the restrictions imposed by their local banks.

Cryptocurrency prices or markets are not regulated in Nigeria as they are elsewhere. As of writing this blog post, there are no crypto exchanges in Nigeria, though NairaEx is planning to open an exchange platform soon. The exchange is expected to operate like established forex platforms or stock trading platforms where traders can buy or sell crypto assets using currencies like USD or naira.

The CBN's Ban in February Came Shortly Before Three New Crypto Exchanges Were Launched in Nigeria

In February 2021, the Central Bank of Nigeria (CBN) issued a circular prohibiting all banks in Nigeria from providing services to crypto exchanges. The directive was made without any public consultation or notice – unlike previous bans that have been challenged in court and public forums.

In a country where you can get a passport on the street and conduct crypto transactions at any time of day, it seems strange that the CBN's ban has had no impact on crypto trading. However, as many traders have pointed out, this is not surprising given the rise of crypto exchanges across Africa and their high-level security measures over the past year.

To understand why Nigerians still find it possible to trade cryptocurrencies despite recent CBN moves, it is essential to review some key facts about how these operations work:

Cryptocurrency and Blockchain Are Not Fully Regulated by the Law in Nigeria, Although the Two Are Becoming Increasingly Popular Across Africa

Although a government ban on cryptocurrencies and trading is the same, crypto exchanges are still doing brisk business in Nigeria.

What's the deal? It turns out that any law does not currently regulates cryptocurrencies in the country. Some may say this is a good thing, but others have expressed doubt about how long this situation can last.

As previously mentioned, there are no laws protecting cryptocurrency investors and traders from fraud or theft. There aren't even many laws at all regarding IT crime. This means that there's no guaranteed way to get your money back if something happens to it!

Nigerians Are Turning to Cryptocurrencies Because They Offer an Alternative to Local Currency

As much as Nigerian officials would like to see their country's financial markets flourish, you must understand that this is a sensitive matter. A former governor of the Central Bank of Nigeria recently stated that cryptocurrencies offer an “easy route” for money laundering and other criminal activities, so he called for a ban on trading them. But despite the government's opposition to crypto, it seems that Nigerians are turning to this unregulated market in droves.

Users are attracted by the promise of greater transparency and security than afforded by Nigerian banks. This nation has been struggling financially for years—in fact, over 60% of adults in Nigeria don't even have bank accounts. Since any central bank doesn't control cryptocurrency, it offers an alternative pathway for those who want to protect their wealth from inflation and devaluation.

One primary reason why Nigerians are so interested in trading crypto could be its fast speed. If you've ever tried to wire money across international lines, you know that it can take days or weeks before it finally reaches its target destination (if it even makes it there at all). Crypto transactions happen almost instantly because they're processed through decentralized networks rather than banking systems and governments.

The low-cost factor associated with cryptocurrencies also plays into their popularity with Nigerians. If you need to send several thousand dollars abroad but can only afford a couple of hundred dollars worth of fees, switching to bitcoin or ether may be your best solution if your bank charges too much per transaction (which is common in Nigeria).

Crypto and oil currency is a digital mode of exchange similar to the usual currencies like Dollars, Pound, and Euro. However, these are specifically designed to fulfill the motive of exchanging digital information via a process enabled by the assured ethics of cryptography. So if you wanna trade, you should use https://www.robomarkets.com/beginners/info/charts/energies/brent/ and get big money.