Are There Regulations Governing Cryptocurrencies?

As cryptocurrencies continue to gain traction in the investing and trading public on a global scale, there has been confusion as to whether the emerging asset class is governed by regulations.

First, it is pertinent to note that there is no recognised single regulatory body for cryptocurrencies. Hence, regulators around the world approach its regulation differently. For instance, in the United States (US), digital assets have been the focus of much attention at both the Federal and state levels.

Most of the focus has been channeled to the administrative and agency level, including the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), the Federal Trade Commission (FTC), and the Department of the Treasury (USDT), through the Internal Revenue Service (IRS), the Office of the Comptroller of the Currency (OCC), and the Financial Crimes Enforcement Network (FinCEN).

While the aforementioned agencies have significantly contributed to the existence of crypto, not much formal regulation has taken place. It is, however, a different scenario in other countries, including Nigeria.

In spite of the enormous opportunities, and advantages cryptocurrencies offer, the Nigerian government banned digital assets transactions, and as a matter of fact, threatened to…