The Nigerian government is set to pass a bill that will recognize Bitcoin () and other cryptocurrencies as legal capital for investment.
According to local news outlets, the bill is expected to make amendments to the Investment and Securities Act of 2007. If passed, it will assign regulatory roles to the Nigerian SEC and the Central Bank of Nigeria (CBN) on matters relating to crypto and digital assets.
In 2021, the CBN banned commercial banks from dealing with cryptocurrencies. Moreover, the government ordered crypto platforms to refrain from providing services to Nigerians.
Babangida Ibrahim, the Chairman of the House of Representatives Committee on Capital Market and Institutions, noted that the bill will not reverse the crypto ban. Instead, it will establish a legal framework for the CBN to regulate cryptocurrencies.
Ibrahim added that Nigeria needs to keep up with global practices following recent changes in the capital market.
“When it comes to digital currencies, they have different names and it depends on the jurisdiction. These currencies, they don’t have boundaries. You can stay here in Nigeria and invest in the United States, Canada or anywhere.”
It is worth noting that despite the crypto ban, Nigeria's P2P trading volume surpassed the $1B mark in June 2022. Nigeria ranks 11th among the nations with the fastest crypto adoption rate.
