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Nigeria to pass new bills on crypto usage

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By Okunloye Abiodun Segun

NSEC will now see crypto and other digital assets as capital for investment.

Nigeria’s Committee on Capital Markets and Institutions Chairman Babangida Ibrahim has filed two reports on proposed bills to restructure the country’s capital markets. He said that new legislation that was going to be passed by the House of Representatives would legalize cryptocurrency usage across the board in Africa’s largest economy. Cryptocurrencies and also other digital assets would be considered “capital for investment” by Nigeria’s Securities and Exchange Commission under the Investments and Securities Act, 2007 (Amendment) Bill. It will outline the SEC and CBN’s crypto regulatory roles.

A bill for a law repealing the Chartered Institute of Stockbrokers Act, Cap. C9, Laws of the Federation of Nigeria, 2004, and enabling the formation of the Chartered Institute of Securities and Investments, as well as for related matters, was the title of the first proposed bill. While a bill for legislation to get rid of the Investments and Securities Act of 2007 and put in place the Investments and Securities Bill to make the Securities and Exchange Commission the top regulatory body for the Nigerian capital market and to regulate the market to make sure that capital is raised, investors are protected, the market is fair, efficient, and transparent, and systemic risk is reduced, is the second.

The country needs to include digital assets and others in the new act.

Before now, the CBN had instructed financial institutions such as banks and others to track down and close any accounts belonging to people or organizations running cryptocurrency transactions. At the time, the central bank claimed cryptocurrency exchange and payment facilitation were illegal. Ibrahim said that Nigeria needed to stay up with economic innovation on a global scale. He said Nigeria needs a robust capital market and must follow global practices to do that. Digital currencies, commodities exchanges, and other important innovations in the financial market need to be included in the new act.

According to Ibrahim, the classification of digital currencies varies depending on the jurisdiction. However, these currencies do not acknowledge territorial boundaries. It’s possible to remain in Nigeria and invest in the U.S., Canada, or elsewhere. Their nature is digital. Therefore, the Central Bank of Nigeria (CBN) found that many cryptocurrency investors do not even have accounts in the country. Because of this, they fall outside of the CBN’s purview. The CBN cannot monitor them since they aren’t using local accounts.

Only 0.5% of Nigerians’ have adopted the e-Naira digital currency.

When the Central Bank of Nigeria (CBN) released the eNaira in October 2021, Nigeria became one of the first nations around the world to use a central bank digital currency (CBDC). However, adoption of the CBDC by the general public has been extremely slow, with about 0.5% of Nigeria’s population utilizing digital currency in their daily life. To promote its “cash-less Nigeria” strategy and encourage greater usage of the eNaira, the Central Bank of Nigeria has been compelled to take the extreme step of limiting the cash amount that people can withdraw from their bank.

In accordance with the guideline made public by the CBN, people and organizations are now only permitted to withdraw N20,000 ($45) per day and 100,000 ($225) weekly from ATMs. Bank account restrictions are 100,00 ($225) per day and 500,000 ($1,125) each week. Individuals pay 5%, and corporations 10% if they exceed the limitations. With the highest adoption rate in Africa and the 11th highest rate worldwide, Nigeria is home to a populace often regarded as the most crypto-savvy on the continent. In 2022, 35% of Nigerians 18–60 owned or traded cryptos.

Regulation is the idea behind the banning of cryptocurrency use in Nigeria.

Reversing the ban was not the primary concern, but rather developing a regulatory framework for digital currency, according to Ibrahim. The Securities and Exchange Commission oversees the capital market, while the Central Bank of Nigeria oversees the financial markets. The legislator claimed that these and other concerns have to be taken into account throughout the regulatory process. It’s not that cryptocurrencies are against the law, but there are no regulations in place to govern them, he explained. The need to regulate derivatives, commodities exchanges, digital currencies, and other financial innovations is just one example of why the act needs to be updated.


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Admin
9 months ago

Nigeria to pass new bills on crypto usage – NSEC will now see crypto and other digital assets as capital for investment. – Express your point of view.

SarahDiv
SarahDiv
Member
9 months ago

This very Cryptocurrency was stopped by the CBN prohibiting any form transaction that has to do with crypto but they’re now embracing it. It would have been better for the government to do their studies before taking step will later affect the country.

jdpumping
jdpumping
Member
9 months ago

For the fact that crypto has been widely accepted I see no reason Nigeria is struggling to accept it but it’s never late for saying a bill of inclusion will be passed and it will be crypto will be finally put into use by many and accepted.

Abusi
Abusi
Member
9 months ago

The Nigeria government doesn’t believe in Blockchain. There is need to have an implementable law that will help make the usage of crypto easier and better.

Adeolastan
Adeolastan
Member
9 months ago

The way world is moving now,there is going to be different approach to some things and any government or country that is not ready to do this will be lack behind.Cryto is new way of transaction business which doesn’t require carrying of cash for any transaction.

theApr
theApr
Member
9 months ago

Nigeria must adopt international standards in order to have a strong capital market. The new act must cover innovations like digital currencies, commodity exchanges, and other significant financial industry changes.

Remi1
Remi1
Member
9 months ago

The Nigerian government rejects blockchain technology. A workable law is required to make it simpler and better to use cryptocurrencies. The main focus was on creating a regulatory framework for digital money rather than lifting the ban.

Kazeem1
Kazeem1
Member
9 months ago

Two papers on potential new laws to reorganize Nigeria’s financial markets have been submitted by the Committee on Capital Markets and Institutions of the country’s legislature.

Adesanyaj72
Adesanyaj72
Member
9 months ago

Although there is a measure in the works to replace the Investments and Securities Act of 2007 with the Investments and Securities Bill, there is now a bill in the works to repeal the 2007 law.

Chibuzor
Chibuzor
Member
9 months ago

The first law that was submitted was titled “allowing the formation of the Chartered Institute of Securities and Investments, as well as for connected concerns,” and it was intended to cover a variety of issues.

Taiwoo
Taiwoo
Member
9 months ago

The Central Bank of Nigeria has told banks and other financial institutions, like credit unions, that they need to find and close any accounts that belong to people or groups that are buying or selling bitcoins.

Hassan Isa
Hassan Isa
Member
9 months ago

Digital currencies, commodities exchanges, and other significant developments in the financial industry are necessary to create a robust capital market in Nigeria, and the new legislation must reflect international best practices.

Godsewill Ifeanyi
Godsewill Ifeanyi
Member
9 months ago

These monetary systems do not take into account geographical distinctions. It is feasible to continue living in Nigeria while making investments in other countries, such as the United States or Canada.

Tonerol10
Tonerol10
Member
9 months ago

Nigeria to pass new bills on crypto usage. sometimes it looks as if the government of Nigeria have no plan on things that will benefit the country. Since crypto has been widely accepted why can Nigeria government accept it

Nwachukwu Kingsley
Nwachukwu Kingsley
Member
9 months ago

As a last resort, the Central Bank of Nigeria has imposed strict limits on the amount of money that can be withdrawn from accounts.

Haykaylyon26
Haykaylyon26
Member
9 months ago

Crypto is a new transaction to perform business, it is cash less it don’t no require cash. Our country should embrace it, am sure it will help the country if is use in the right step or way other country make use of crypto and it favor them

DimOla
DimOla
Member
9 months ago

The CBN don’t know what they’re doing. Why bring back what you have banned. Cryptocurrency was ban in Nigeria in a bid to promote eNaia. Unfortunately, that didn’t work out. Let the CBN do their homework before taking irrelevant steps.

Ultra0711
Ultra0711
Member
9 months ago

To develop a robust capital market, Nigeria must adhere to international standards. Innovations like digital currencies, commodities exchanges, and other substantial alterations to the financial sector must be covered by the new statute.

Iyanu12345ogg
Iyanu12345ogg
Member
9 months ago

Crypto is a new transaction to perform business, it is cash less it don’t no require cash. Our country should embrace it, am sure it will help the country if is use in the right step or way other country make use of crypto and it favor them.

Tolaniiii
Tolaniiii
Member
9 months ago

The government of Nigeria is skeptical of Blockchain technology. A law that can be put into effect to improve and facilitate crypto usage is necessary.

Christiana
Christiana
Member
9 months ago

A thriving capital market in Nigeria requires international norms. The new statute must cover digital currencies, commodities exchanges, and other major financial industry reforms.

Bola12
Bola12
Member
9 months ago

Nigeria’s capital market needs digital currencies, commodities exchanges, and other financial industry advances, and the new legislation must follow international best practices.