Nigeria, one of the most crypto-curious countries, will now officially permit cryptocurrency. Babangida Ibrahim, the House of Representatives Committee on Capital Markets and Institutions chairman, revealed that the committee would soon pass a bill allowing digital currencies in Nigeria, as reported by Punch on December 8th.
The report claimed that the bill would enable the SEC to recognize cryptocurrencies and other digital funds as capital for investment if approved and became law. It will also outline how the SEC and Central Bank of Nigeria will regulate digital currency.
The data from TripleA research revealed that the estimated number of crypto owners in Nigeria is over 22 million. It means 10.3% of the country’s total population is crypto owners, despite its central bank declaring in February 2021 that the use of crypto is “a direct contravention of existing law” and forbidding commercial banks from dealing in them.
According to Punch’s report, Ibrahim submitted reports on proposals aimed at capital market reform on Wednesday. Additionally, the report One of the legislation was entitled:
A Bill for an Act to Repeal the Chartered Institute of Stockbrokers Act, Cap. C9, Laws of the Federation of Nigeria, 2004 and Provide for Establishment of Chartered Institute of Securities and Investments; and for Related Matters.’
While the other was mentioned in the report. However, following the End SARS protests, a decentralized social movement, and many mass protest marches against police brutality in Nigeria, the CBN has issued an order.
The order is for banks and other financial institutions to identify persons and entities trading crypto coins and shut down all transactions and accounts. In addition, “the apex bank stated that dealing with cryptocurrencies and facilitating payments are illegal in the country.”
Nigeria’s New Bill & Crypto-Currencies
In a Saturday interview with their correspondent about the bills, Ibrahim argued that Nigeria needed to keep up with advancements in the world economy. He said, “we need an efficient and vibrant capital market in Nigeria.”
He continues by saying that the emergence of digital currencies, commodities exchanges, and various other crucial developments have caused the capital market to undergo a great deal of recent change. These developments must be reflected in the new Act. He asserts that after carefully weighing the reports, it is preferable to discuss this.
Moreover, depending on the country, several digital currencies have different names. These currencies have no geographical restrictions because they are “digital,” said Ibrahim.
He also noted that these were just some of the issues they had to think about and regulate. It wasn’t a problem because none of these were illegal, but there needed to be some kind of rules for what was going on – derivatives, commodities exchanges, cryptocurrencies, and so much more needed rules.
According to Ibrahim’s statement:
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. The CBN is regulating financial markets and the Securities Exchange Commission regulates the capital market.
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