It looks like Nigerians will soon be able to use crypto legally.
The government of Nigeria is reportedly considering passing a bill allowing the use of cryptocurrencies, such as Bitcoin (BTC) and Ethereum (ETH), in the country.
According to the Nigerian Punch Newspapers report, the news was revealed by the Chairman of the House of Representatives Committee on Capital Markets and Institutions, Ibrahim Babangida.
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The chairman stated that after the Investments and Securities Act, 2007 (Amendment) Bill, is passed and legalized, it will let the Securities and Exchange Commission (SEC) consider digital assets as a “capital for investment.”
On top of that, the law will specify how Nigeria’s SEC and the Central Bank of Nigeria will be acting towards cryptocurrencies.
Regarding the plans to legalize crypto, Ibrahim Babangida, stated:
<...> we have to be up to date with global practices. In recent times, there are a lot of changes within the capital market, especially with the introduction of digital currencies, commodity exchanges and so many other things that are essential, that need to be captured in the new Act.
It is worth noting that, in February 2021, Nigerian authorities banned citizens from using cryptocurrencies. The move was initiated by the Central Bank of Nigeria (CBN). At that time, CBN instructed local crypto exchanges and service providers to stop providing crypto services. On top of that, banks were forced to shut down the accounts of Nigerians who traded crypto.
When talking about the ban, Ibrahim Babangida stated that the measures were applied as many Nigerian traders didn’t use local accounts, so there was no way for CBN to check them. When talking about the plans to legalize crypto, Babangida stated:
It is not about lifting the ban, we are looking at the legality: what is legal and what is within the framework of our operations in Nigeria.”
In other Nigeria-related news, at the beginning of December, The Central Bank of Nigeria limited cash withdrawals from ATMs and banks to encourage customers to use alternative sources, including the country's central bank’s digital currency, eNaira.
