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Nigerian Crypto Capital

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Nigeria has launched a major legislature that will continue to facilitate the adoption of cryptocurrency in a country of over 200 million people.

Why it matters: If the Investments and Securities (Amendment) Bill 2007 is passed, the Nigerian Securities and Exchanges Commission (SEC) will recognize cryptocurrencies and other digital assets as capital. Babangida Ibrahim, the chairman of the committee of the House of Representatives, said in an interview with the local news agency Punch, that the law will define the role of the Central Bank of Nigeria and the SEC of the country regarding cryptocurrencies.

Ibrahim said that the bill is not a complete break from the existing prohibitions, but only a review of what can be done within the current legal framework. However, he thinks that Nigeria should continue to innovate in the world economy.

Significantly, the Nigeria Export Processing Zones Authority (NEPZA) said in a press release in September that it is considering a partnership with crypto exchange Binance to create a free zone to promote economic growth. Moving forward: The legal process comes at a time when Nigeria has spent almost 2 years under a cryptocurrency ban for financial institutions, and the country’s CBDC, eNaira, is not widely accepted .

Since the launch of the CBDC in October 2021, it currently stands at an acceptance rate of only 0.5% among its residents. Further approval of eNaira may be prohibited by law.

“This bill will really create acceptance of cryptocurrencies. With the regulation of this asset class, we can start to see tax and legal registration if you want to create something in the blockchain space,” says Anointing Aha, Community Manager for Nigeria and exchange. global crypto LBank.

Meanwhile, Nigeria seems to be moving towards more adoptions, but nothing is set in stone. Aha adds, “Presidential elections in Nigeria are coming up early next year, and a lot will depend on the new president.”

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