Nigeria To Assent The Use Of Bitcoin And Cryptocurrencies

A report by a Nigerian media outlet, Punch Newspapers, has it that the Nigerian government will soon pass a law that will recognize the usage of Bitcoin and other cryptocurrencies.

According to the report, Nigeria is reversing its stance on cryptocurrencies to keep up to date with “global practices.”

In an interview with Punch Newspapers, House of Representatives Committee on Capital Markets Chairman Babangida Ibrahim said that the Investments and Securities Act 2007 (Amendment) Bill will soon be signed into law, allowing the local Securities and Exchange Commission to “recognize cryptocurrency and other digital funds as capital for investment.”

Almost 2 years ago, Nigeria banned crypto activity in February 2021 as the Central Bank of Nigeria (CBN) ordered Nigerian crypto exchanges and service providers to cease activity.

Ibrahim stressed that the passing of the law isn’t a 180-degree turn on the ban but rather a secondary review of what is within the scope of the CBN’s powers.

If the law passes, amendments will be made to Nigeria’s Investments and Securities Act 2007.

In addition to the assignment of legal recognition to Bitcoin and other cryptocurrencies, the law will outline the regulatory roles of the Central Bank of Nigeria and Nigeria’s Securities Exchange Commission (SEC) on matters relating to digital currencies, according to the report.

The law also comes as Nigerians have also shown little to no interest in Nigeria’s central bank digital currency, the eNaira, which had only obtained a 0.5% adoption rate in October, 12 months after its launch.

Leave a Reply

Your email address will not be published. Required fields are marked *