Nigeria to Recognize Crypto as Investment Capital
The Nigerian government will reportedly soon pass a law that will recognize the usage of Bitcoin and other cryptocurrencies as a means to keep up to date with “global practices.”
If passed, the proposed Investments and Securities Act, 2007 (Amendment) Bill, will also define supervisory roles for the Central Bank of Nigeria and the country’s Securities and Exchange Commission (SEC) with respect to digital currencies, Babangida Ibrahim, chairman of the House of Representatives Committee on Capital Market and Institutions, told Punch.
Ibrahim also highlighted the need for Nigeria to keep up to date with trends and developments in capital markets. He explained, “Like I said earlier during the second reading, we need an efficient and vibrant capital market in Nigeria. For us to do that, we have to be up to date [with] global practices.”
It is important to note that Nigeria banned institutions from facilitating cryptocurrency transactions back in 2017. The SEC clarified in May that it saw digital currencies as securities that represent assets such as debt or equity claims on the issuer.
“It is not that they are illegal but we don’t have regulation for them. So, these are some of the reasons why we need to review the Act and put some regulations for most of the activities – derivatives, commodity exchanges, digital currencies and so many other things,” Ibrahim told Punch.
However, Ibrahim who served as Nigeria’s president between 1985 and 1993, insists 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:
“It is not about [the] lifting of the ban, we are looking at the legality: what is legal and what is within the framework of our operations in Nigeria.”