According to ChainCatcher, citing a report by Premium Times, the Nigerian Senate on Tuesday passed a bill at second reading that is designed to regulate cryptocurrencies, protect investors and strengthen the country’s digital economy. After clearing the second reading stage, the bill was referred to the Capital Markets Committee for further consideration. The committee has been asked to submit its report within four weeks.
Bill moves to the Capital Markets Committee
The bill was introduced by Deputy Senate President Barau Jibrin. Its central purpose is to establish a comprehensive regulatory framework for virtual assets, digital assets and virtual asset service providers. With the bill now before the committee, lawmakers will continue reviewing the proposed regulatory structure, the entities covered by the framework and the requirements that would apply to the sector. The committee’s report is expected within the four-week period set by the Senate.
Licensing and compliance for crypto exchanges
According to the report, the bill would require cryptocurrency exchanges to obtain licenses and comply with transparency and compliance obligations. This would place crypto trading platforms under a more defined regulatory process. The scope described in the bill covers virtual assets, digital assets and virtual asset service providers, creating a formal structure for how such businesses are treated under the proposed rules.
Chief Whip Tahir Monguno said during the debate that Nigeria is one of the African countries with the highest rates of cryptocurrency adoption, but that it has fallen behind several other African countries in regulating the digital financial ecosystem. He also said the absence of a clear legal framework exposes investors to risk and allows illegal activity to thrive within the industry. Following the passage of the second reading, the next step is the Capital Markets Committee’s review and report.