RE: This is why Nigeria is not a cryptocurrency hotspot
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They will be hesitant to do so without regulatory framework.
Coins.ph was very early to the game and within its first months had launched in both the Philippines (its home base) and Vietnam. Only some months after being in Vietnam the country decided against crypto - ironic because Vietnam is host to thousands of solid blockchain engineers — and Coins had to pack up. Pretty much over night.
Of course, while trying to raise funding that totally ruined their numbers. In fact, they couldn’t raise international funding until the Philippines had created a holistic approving framework (third world/developing nation so everything depends on central licensing).
They are expanding internationally again, but only in countries where there is actual legal approval and they can get licensed. All that pretty much totally ruined their early entry in the market benefit.
And to expand aggressively, and reach a wide population, lots of money (read funding) is needed because user acquisition is expensive. Even worse so if telcos are the usual Goliaths who will eventually enter the market to flex the smaller one out. Even if that means merger & acquisition.
Without a legal approving framework it is VERY risky for any startup.
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I do get your point. We've seen businesses in this part crumble due to lack of proper regulatory framework. Go-okada was one of such businesses that lost millions this year after the ban on motorcycles in major cities in Nigeria.
However, I will like to see more local inclusive or should I say participation esp amongst the heavyweights companies in the Nigerian market. Everyone acts like crypto doesn't exist when in fact it is thriving. I bet if proper research is done it will show it contributes significantly to our GDP.
Infrastructure wise, Nigeria might not be the ideal location for crypto miners because of the poor electricity and cost of doing business. However, Fintech is growing in Nigeria and I believe crypto should go with the trend. Like you said proper regulatory framework is needed esp to protect local crypto businesses.
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It will happen like it happens here in South East Asia.
The new fintech startups will expand their mobile wallets. When they are good with the telco (I bet you huys have millions of mobile payments every day via SMS), and the gov seems favorable, they will include the first few cryptoes in the mobile wallet (BTC, ETH, and probably XRP because of Western Union).
As the Gov sees there's no huge issue with those, they will be lobbied for a holistic regulatory framework. With potentially more international funding coming in as "bait". Then one will eventually launch an exchange.
That's how it went here. Now we have more than 10 million local crypto wallets but majority are used just as mobile payment wallet. But he sector has been legalized. A part of it, of course, being a development nation the legal part is not always helpful either. But it's a start.
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