Nigerian Government Proposes Legislation Regulating Cryptocurrencies

• The local SEC will be able to recognize cryptocurrencies.
• This news comes about 24 months after the ban.

To keep up with global trends, the Nigerian government is expected to approve legislation regulating Bitcoin and other cryptocurrencies in the near future. On December 18th, Punch Newspapers, a leading publication in Nigeria. Published the article after interviewing House of Representatives Committee on Capital Markets Chairman Babangida Ibrahim.

The local Securities and Exchange Commission will be able to recognize cryptocurrencies. And other digital monies as capital for investment. If the Investments and Securities Act 2007 (Amendment) Bill is passed and signed into law, as stated in the article.

Not a Complete Reversal of Ban

Ibrahim emphasized the need for Nigeria to be abreast of the most recent capital market changes and trends. The Central Bank of Nigeria (CBN) ordered Nigerian crypto exchanges and service providers to halt operating in February 2021. And mandated banks terminate the accounts of any persons or companies discovered to be involved in trading activities. This news comes about 24 months after the ban.

But Ibrahim, Nigeria’s president from 1985 to 1993, claims that the law’s passage isn’t a complete reversal of the prohibition but rather a secondary evaluation of the CBN’s authority. If the bill is signed into law, changes would be made to Nigeria’s Investments and Securities Act of 2007.

Bitcoin and other cryptocurrencies would be given official status under the legislation, and the Central Bank of Nigeria and Nigeria’s Securities Exchange Commission (SEC) will each have clearly defined regulatory responsibilities with respect to digital currencies.

Even though the eNaira, the digital currency (CBDC) issued by Nigeria’s central bank, has been available since October of last year, its adoption rate of 0.5% indicates that Nigerians aren’t too excited about it.