Legal Aspects Of Crypto Platforms: NZ Vs. Nigeria

The development of cryptocurrency and its introduction into the general financial system of the country is a rather complicated but interesting process. Some countries have a negative attitude toward crypto, and some actively try to introduce it into their system.

An important aspect of all interaction with cryptocurrency is its legalization. Therefore, we decided to compare two seemingly different countries, New Zealand and Nigeria, and the processes for legalizing cryptocurrencies inside.

Legal Framework for Crypto Platforms in New Zealand

In New Zealand, there is no special legislation regulating the field of cryptocurrency and crypto business. However, payments using cryptocurrencies are gaining more and more popularity, and the authorities can no longer ignore them.

Regulatory Bodies

Today, the New Zealand Tax Service and the Financial Markets Authority consider crypto assets as property and do not consider them legal tender and only transactions that fall under the definition of “financial services” and “financial products” that require a license from the Reserve Bank of New Zealand are subject to regulation.

The transactions are governed by the Financial Markets Conduct Act 2013 and the Anti-Money Laundering and Countering Financing of Terrorism Act 2013.

Is Crypto Trading Marked as Gaming in New Zealand?

 

Cryptocurrency is not a legal tender, but no one in New Zealand forbids it to pay for goods or services to engage in mining. Gaming is also prohibited to some extent for internal businesses and companies but is fully open to external investors and online casinos/bookmakers. 

As a result, both cryptocurrency and gambling are similar categories. Usually, crypto gamblers pick new casinos online and select their preferred payment method. The New Zealand Gambling Commission conducts rigorous checks on all gaming companies, including crypto sites, so that their activities are legal, honest, and, of course, taxed.

Legal Framework for Crypto Platforms in Nigeria

The development of cryptocurrencies in Nigeria is surprisingly much more progressive than in New Zealand. The Nigerian government has stated: “We need an efficient and dynamic capital market in Nigeria. To do this, we must keep pace with global practices.” A strong statement is given that cryptocurrency was completely banned inside the country.

Regulatory Bodies and Nigeria Payments System Vision 2025

 

The primary mechanism for interacting with money, including cryptocurrency assets, is the Central Bank of Nigeria. In 2021, CBN and Nigeria launched the first national digital currency in Africa called eNaira.

The eNaira is the first digital national currency, launched in 2021. The government is actively promoting its use: the country has introduced the rationing of foreign currencies and launched a fight against cryptocurrencies. At the same time, the authorities offered various discounts to citizens and companies that use the digital version of the naira.

As a result, on January 9, 2023, CBN published the report “Nigeria’s Payment System Vision 2025”. The department emphasizes the need for legal control over the circulation of stablecoins and coins issued during the ICO.

In its report, the regulator points out that the turnover of private stablecoins, such as USDT or USDC, has grown significantly in the country. In this regard, the state must outline what is permitted.

Unfortunately, the eNaira turned out to be relatively weak. Only 1% of the population took part in its development. Therefore, the decision to expand other cryptocurrencies was quite obvious.

Is Crypto Trading Marked as Gaming in Nigeria?

 

The use of (at one time illegal) cryptocurrency and its great popularity among gamblers attracted much attention from the state and the National Lottery Regulatory Commission. The online casino and gaming business once went the same way.

Initially, only grounded establishments were legally available, but over time, the NLRC of Nigeria created several laws aimed at legalizing online gaming. Now it’s the turn of crypto sites.

Future Outlook for Crypto Platforms in New Zealand and Nigeria

New Zealand is an active member of the crypto market and is constantly improving its conditions for doing business related to cryptocurrencies, including gaming platforms. The difference between New Zealand and Nigerian gaming platforms with cryptocurrency is not significant. 

While New Zealand actively participates in the cryptocurrency market, Nigeria is developing digital currency services. After the unsuccessful launch of the national cryptocurrency eNaira, Nigeria did not stop developing new opportunities for crypto platforms.

In the future, according to experts, a large growth of crypto platforms is expected for New Zealand, which will significantly boost the country’s financial system. For Nigeria, it could be precisely the same, as investors are interested in the large but so far uninterested crypto community. But now, the government, CBN, and NLRC must do many things and change earlier laws.

SOURCE: DAILY TRUST