Nigerian-based Punch Newspaper reports that the Nigerian chamber is expected to pass a law that would recognize the usage of cryptocurrencies including Bitcoin to keep up with “global practices.” This is following an interview with ex-president Babangida Ibrahim, the current Chairman of the House of Representatives Committee on Capital Market and Institutions.
The Investment and Securities Act (2007) Amendment Bill, once passed and signed into law, would let the Securities and Exchange Commission recognise “cryptocurrencies and other digital funds as investment as capital for investment.” This law would also define their regulatory roles including the Central Bank of Nigeria’s [CBN] on these digital currencies.
This came as quite a shock as Nigeria had banned crypto activity in February 2021, directing all crypto exchanges and service providers in Nigeria to cease such activity, while banks were mandated to shut down accounts involved in trading these currencies. However, it is not without reason, as Nigerians have been shown to continually adopt cryptocurrencies following the ban.
Ibrahim has stressed that this is not to undo the ban completely, but to review what CBN could do in their jurisdiction. He said: “It is not about lifting of the ban, we are looking at the legality: what is legal and what is within the framework of our operations in Nigeria.”
He stated that the CBN noticed that the majority of these investors don’t even utilise local accounts when cryptocurrency was first outlawed in Nigeria. Therefore, they fall outside of the CBN’s jurisdiction. The CBN could not check them because they are not using local accounts.
