Unregulated nature of Crypto investments remains a key problem—Ilodianya
Whereas Crypto investments have gained ground in Nigeria and a lot of Nigerians are investing in crypto, a leading development economist and chief executive of SFS Capital Nigeria Limited, Patrick Ilodianya, has stressed that the lack of regulations guiding activities in the sub-sector remains a major problem for players.
According to him, “Cryptocurrency is an exciting innovation supported by blockchain technology. Generally, Nigerians are very adventurous, and some people believe it provides a hedge against devaluation.
“Unfortunately, cryptocurrencies are unregulated. And this is a major problem. Due to the lack of regulation, many people would lose the bulk of their investments in the coming years.
Continuing, Ilodianya averred that “In my opinion, putting money in cryptocurrency now is not investing; it’s more of gambling. So, many things can go wrong. The crypto exchanges basically act like banks, fund managers and trading exchanges, all in one without any regulatory oversight. “There will be many problems in the future. I believe enthusiasm would deepen massively. But I also believe when regulation catches up and regulators become actively involved, the abuses would reduce and the attractiveness would increase.
