Nigerian SEC Issues First License to Bitcoin Exchange | Britcoiners by CoinCorner #139
Join Danny, Molly, Zakk and Dave for industry-led opinions on important Bitcoin stories from the week. This week's topics: Intro Bitcoin price Nigerian SEC issues first license to local crypto exchange Nayib Bukele: "Bitcoin hasn't had the widespread adoption we hoped for" Wells Fargo to recommend Bitcoin ETFs to clients Elon Musk and Tesla beat Dogecoin lawsuit Biden to block US Steel acquisition Dell's Q2 earnings report shows no Bitcoin holdings Solo miner wins $200k Bitcoin lottery with 0.012% of total hashrate Scientific paper proves Bitcoin mining can reduce methane emissions Brazil's Supreme Court upholds decision to ban X Qatar unveils 2024 digital assets framework El Salvador continue stacking 1 BTC per day Bank of Canada cuts policy rates by 25 basis points Bitcoin Miner Heater Competition Britcoiners is a Bitcoin podcast by CoinCorner (https://www.coincorner.com) - a global leader in Bitcoin and Lightning services. Join our Telegram: https://t.me/britcoiners Follow Britcoiners on X: https://x.com/britcoiners Follow CoinCorner on X: https://x.com/coincorner #coincorner #britcoiners #bitcoin #bitcoinpodcast #bitcoinnews
Transcript
So, first on the agenda, Nigeria's SEC issues the first licence to a local crypto exchange. Yeah, Quidax is the name. Is it? Who is it? Quidax? Quid... Quidax? I've never actually heard of them. But yeah, obviously countries around the world now are starting to bring in regulations. Nigeria's quite a forward mover there, which is quite interesting. There's some minimum capital requirements which I found interesting. It's like $600,000, really, and a certain level of business insurance.
Yeah, that's high.
Yeah, that is high, yeah. It's $556,000, and a Fidelity Insurance Bond covering at least 25%. Oh, wow, that's quite a lot, then. So that's pretty high for start-ups and stuff, obviously, that kind of kills it for start-ups in that region.
Yeah, a lot of the regulation generally does over time. I mean, we've seen that in other countries as well. The risk capital requirements and certain things, not as high as that though.
But it's reassuring in terms of safeguarding though, isn't it? I mean, they're holding that capital, really.
Do I think it is? I dunno. It means you've got to have that sort of capital as a company. You can't just be, like, a startup. If only FTX had that $556,000 in their bank, ready to help bail them out with that $16 billion... It's ridiculous.
It's not even evil, just what am I saying there? Yeah, so, you don't think there should be any capital requirement?
If you're trying to base a capital requirement based off an industry and look at the history of what would help save those companies, there's a better way. Going bankrupt isn't a good way to do capital requirements, right? It's about protecting people's money. But having 500K just sat in a capital requirement account somewhere? It's not the way to do it. How many companies have gone bankrupt for just $500,000?
But you could easily do, like, a proof of funds in terms of capital requirements, and they report it. So, do proof of reserves, proof of funds not a $500,000 held bond or capital requirement.
Yeah, but every single one that's ever gone bankrupt or lost Bitcoin or whatever, been hacked and lost crypto they're talking tens of millions, hundreds of millions. It's pointless. It doesn't achieve anything.
Yeah, OK. So, proof of reserve would be a better way to do that? Proof of reserve safeguarding, 'cos I think that's
No, I only said that 'cos you said, "Why not do that?" But I'm saying you could do proof of reserve, yeah. But proof of reserve is something different. It just proves that you've still got the customer's money, but that could still get lost at some point, which wouldn't solve it either...