Despite opposition to the implementation of the five per cent telecoms tax on calls and data by the Communications and Digital Economy Minister, Prof Isa Pantami, and other stakeholders in the economy, the Federal Government has insisted it was not backing down on tax. Instead of over-taxing the telecoms sector, the government should provide the regulatory space for crypto transactions to boost its digital tax earnings, writes LUCAS AJANAKU.

The Minister of Communications and Digital Economy, Prof Isa Pantami, appeared to have captured the mood of the nation, aligning with the masses when he expressed his opposition to the five per cent telecom tax.

One of the reasons he opposed the tax is its timing. To Pantami, it is rather inauspicious for the Federal Government to add to the yoke of over-burdened Nigerians. Pantami is not alone. The President, National Association of Telecoms Subscribers (NATCOMS), Deolun Ogunbanjo, is also against the tax because of the poverty some of the policies of the government has visited on the citizens.

For the Chairman, Association of Licensed Telecoms Companies of Nigeria (ALTON), Gbenga Adebayo, the tax is one too many. He wondered why the fixation of the telecoms sector for taxation. He said no fewer than over 40 taxes, levies, dues, including payment for rough-necks that would insist on cash before fueling base transceiver stations (BTS), exist in the sector.

Pantami, Adebayo and Ogunbanjo are indeed on point on the rising poverty in the land and the need for the government to show empathy. Nigeria’s inflation rate in June, surged further to 18.6 per cent compared to 17.71per cent recorded in the previous month, according to the last CPI report for the month of June 2022, by the National Bureau of Statistics (NBS).

Inflation rate climbed to its highest level in 65 months (over five years), and the fifth consecutive monthly rise. The last time the inflation rate hit the 18.6 per cent ceiling was January 2017, when it stood at 18.72per cent.

Monthly, the inflation rate increased to 1.82 per cent in June, this is 0.03 per cent higher than the rate recorded in May 2022 (1.78 per cent). Also, the urban inflation rate increased to 19.09per cent (year-on-year); this is 0.74per cent points higher than the 18.35 per cent recorded in June 2021, while the rural inflation rate increased to 18.13per cent in June 2022 from 17.16 per cent recorded in the corresponding period of 2021.

Crypto world

Despite regulatory reservations, cryptocurrencies have over the years gained enormous popularity, making people adopt them as a tool for financial transactions. In fact, cryptocurrencies have delivered several benefits, such as minimal transaction fees, instant accessibility and high levels of transparency.

With the benefits cryptocurrency has over traditional currency and even other asset classes, it’s hard to argue that there’s no value in transacting with or investing in crypto. The utility provided by many cryptocurrencies is of great benefit to people who value fast and secure transactions. And this is only going to grow more accessible over time with fewer technical hurdles being curbed.

As a demonstration of the fact that if crypto is given a regulatory breathing space, it could boost earnings from digital cash, Mara, a pan-African crypto exchange trading platform, Mara, said plans to impact 1 billion people over the next five years in Nigeria and other parts of Africa.

Its co-founder/CEO, Chi Nnadi, said: “Starting this September with Hack The Mara, we will periodically hold hackathons to solve predominately African problems. We want to train one million people through our training programs and impact a billion in Africa over the next couple of years.”

Speaking on leveraging the platform to establish youths and crypto community, he said platform, which recently raised $23 million in pre-seed, would raise more money on token next year to build more in Africa.

The CEO also said more tokens were going to be listed after building up the Mara community.

Crypto security

As a digital payment system, cryptocurreny doesn’t rely on banks to check and verify transactions. It utilises a peer-to-peer network that makes it possible for anybody, anywhere, to send and receive payments. This system uses encryption to verify transactions and the aim of this is to provide added security and safety.

Just like traditional systems, blockchain networks are not exempted from potential obstacles. However, despite the prevalence of this, there are tools that enable anyone to look up transaction data such as the location, timing, and quantity of cryptocurrency sent from a wallet address. The amount of cryptocurrency saved in a wallet may also be seen by anyone, and this level of transparency helps cut down on any insecurities.

Recently, an automated market maker (AMM), Wine Swap, engaged in an exit scam, and the Binance Security team was able to effectively recover an estimated 99.9 per cent of the nearly $345,000 worth of stolen bitcoins. The platform’s busiest and most dedicated community builders, Binance Angels, have been instrumental in raising money for recovery operations. The volunteer organization assisted a user in recovering 98,000 USDC in funds that were unintentionally sent to the incorrect address.

Keys to enhancing crypto security

While the element of transparency in crypto transactions as well as blockchain networks to conquer any potential insecurities, there is still a need to adopt stringent security measures.

Advanced security measures, offline money storage, real-time activity monitoring, and data encryption are a few of Binance’s main platform security initiatives. In addition to ensuring that only users have access to their personal information and the safety and integrity of user cash, these initiatives also analyze user activity through Binance’s risk management system in the event of any unexpected activity on the account.

While guaranteeing industry-wide compliance with crypto security standards, it’s critical to take user-level security into account, which takes us to the user-first approach.

User-first approach

A high level of security is maintained on the user’s side thanks to the user-first approach. Maintaining a security measure on the user’s side is as crucial to maintaining crypto compliance on the industry side. This is a vital key to enhancing crypto security. The Binance platform consistently prioritises user protection through its cutting-edge security measures and stringent data privacy laws because users are the foundation of the Binance ecosystem. This consists of a comprehensive risk management system, real-time monitoring, and cutting-edge data privacy solutions.

Safe sign-in, access control, and security notifications are among the user-level security measures to ensure adequate crypto security. In addition to the user-first approach measures, Binance also put the following actions in place to guarantee user-level security: prompt alerts in the event of questionable activity, a stringent sign-in policy, and opt-in security measures.

Also, Binance includes a cooling-off time feature that stops trading in derivatives, allowing users to refrain from compulsive buying after experiencing losing streaks. This capability is also accessible for margin trading, allowing for the temporary suspension of activities like borrowing and isolated or cross-margin trading. Along with these capabilities, the platform also contains user-generated material, help articles, an auto-deleverage liquidation indication, and client knowledge tests.

The greatest level possible of cybersecurity must be maintained regardless of the rise in crypto vulnerability, and Binance has taken this step to retain their commitment to user safety by adopting a user-first approach.

Also, it is important for users to take security measures seriously. Keep your devices safe, and also conduct personal research on the cryptocurrency you’re transacting with. This is important as it keeps you informed about the cryptocurrency market and improves your future investments decisions.

(The Nation)