The debate at this level needs to be centred on the determination of whether cryptocurrencies should be classified as a currency or as an intangible property. Although we have a view on this point, there are differing implications that a classification will engender. Where it is decided that cryptocurrencies be classified as a currency, CBN 1 will rightly exercise regulatory control, otherwise, not. There are also tax considerations that arise from a classification, either way.
For instance, if bitcoin or other cryptocurrencies is considered a property, this classification may trigger sales tax obligations. Also, a classification as an intangible property will take bitcoins (and other cryptocurrencies) out of the Exclusive Legislative List 2 in the Nigerian constitution– not being a legal tender– and provide state governments with the legislative competence to regulate cryptocurrencies.
