BY BONNY AMADI
A bill seeking to regulate cryptocurrency, protect investors and strengthen Nigeria’s digital economy has passed second reading in the Senate
The Deputy Senate President, Barau Jibrin, who presided over the session, announced the passage of the bill during Tuesday’s plenary after a majority of senators supported it through a voice vote.
After the passage, the bill was referred to the Senate Committee on Capital Market for further legislative deliberation, including a public hearing.
The committee was directed to report back within four weeks.
The bill, sponsored by Mr Jibrin and presented on the floor of the Senate by Tahir Monguno, seeks to establish a comprehensive regulatory and supervisory framework for virtual assets, digital assets and Virtual Asset Service Providers (VASPs).
It also proposes mandatory licensing, transparency and compliance requirements for cryptocurrency exchanges operating in the country.
Mr Monguno, who is also the Senate chief whip, noted while leading the debate on the bill, that Nigeria has lagged behind several African countries in regulating the digital finance ecosystem despite recording one of the highest rates of cryptocurrency adoption on the continent.
The senator maintained that the absence of a clear legal framework has exposed investors to risks and enabled illicit activities to thrive in the sector.
“This bill speaks directly to the realities of our time, a time when technology is reshaping the global financial system and redefining how people earn, trade, save, and invest.
“Today, millions of young Nigerians are already participating in this digital economy, trading, building fintech platforms, and innovating through blockchain technologies. Our country ranks among the top users of virtual assets globally,” he stated.
Over the years, millions of Nigerians have turned to digital assets such as Bitcoin and other cryptocurrencies for savings, cross-border transactions and investment purposes.
However, the rapid growth of the sector has occurred largely in the absence of a comprehensive legal and regulatory framework. This regulatory gap has exposed many investors to fraud, market manipulation, cyber- crime and the collapse of unregistered digital investment platforms.
In recent years, thousands of Nigerians have reportedly lost substantial sums to cryptocurrency-related scams, Ponzi schemes and fraudulent exchanges operating without effective oversight.
The lack of regulation has also created concerns among policymakers and financial regulators over money laundering, terrorism financing and other illicit financial activities that could be facilitated through anonymous digital transactions.
Recommended for you
Leave a Reply
Leave a Reply
