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  • Business - Companies
  • Updated: Jun 29, 2020

Cryptocurrency Merger & Acquisition Deals Rise Amid Struggle For Approval In Nigeria

Cryptocurrency Merger & Acquisition Deals Rise Amid Struggle

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Olalekan Fakoyejo

Fakoyejo Olalekan is a certified media practitione...

New report has shown that a total of 129 merger and acquisition (M&A) deals have been conducted globally since the inception of the cryptocurrency industry. It was revealed that the 129 merger and acquisition (M&A) transactions have an estimated valuation of $2.6 billion.

According to the June 2020 research analysis conducted by The Block’s John Dantoni, 48% of the total valuation of $2.6 billion was done by Trading Products & Exchanges cryptocurrency firms, while the Trading Products & Exchanges account for 23% of the 129 merger and acquisition (M&A) deals. The most firms that partook in acquisitions were Coinbase, Binance, and Kraken.

The three exchanges (companies) accounted for at least 10 merger & acquisition transactions. the research report stated that out of the 12 remaining blockchain firms, nine of them recorded two transactions each. Note that Gemini, Binance, Coinbase, FTX, Bitstamp, and Liquid were mentioned as the trusted brands in the cryptocurrency market.

Meanwhile, Coinbase, Binance, Huobi, and Bitfinex are the four biggest cryptocurrency exchanges since 2018. And of all Bitcoins via exchanges this year, the four cryptocurrency companies reportedly gained about 40%, this was made known by cryptocurrency data analytic firm, Chainalysis.

It was learnt that smaller cryptocurrency firms shared 24% of transfer volumes of the digital coins after ten cryptocurrency exchanges received 36% combined volume of Bitcoins.

CBN Warned Against Cryptocurrency In Nigeria

Cryptocurrency acceptance is rising in Nigeria, but the Central Bank of Nigeria (CBN) and Nigerian lawmakers have spoken against the new trend, with CBN stating that the cryptocurrency isn't a legal tender, as it only recognises Naira. And in order to prevent more Nigerians from falling victim, SEC has been strict on the capital market.

The CBN in a statement seen by AllNews had stated that cryptocurrencies such as Bitcoin, Ripples, Monero, Litecoin, Dogecoin, Onecoin, etc and Exchanges such as NairaEx are not licensed or regulated by the CBN. In the statement, the CBN said dealers and investors involve in cryptocurrency activities are not protected by the Nigerian law.

"For the avoidance of doubt, dealers and investors in any kind of cryptocurrency in Nigeria are not protected by law. Virtual currencies are traded in exchange platforms that are unregulated, all over the world. Consumers may, therefore, lose their money without any legal redress in the event these exchanges collapse or close business. Members of the public are hereby warned that virtual currencies are not legal tender in Nigeria. Accordingly, we wish to caution all and sundry on the risks inherent in such activities."

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