KEY POINTS
• The Senate has passed a bill seeking to regulate cryptocurrency trading and virtual assets for second reading.
• The proposed legislation aims to introduce licensing requirements, investor protection measures and transparency standards for crypto operators.
• Lawmakers say the bill will strengthen Nigeria’s digital economy, encourage innovation and curb illicit activities in the virtual asset sector.
The Senate has passed for second reading a bill aimed at establishing a comprehensive legal framework for cryptocurrency trading and other virtual asset transactions in Nigeria.
The proposed legislation seeks to regulate digital assets, virtual assets and Virtual Asset Service Providers (VASPs), while creating clear rules for operators and investors within the country’s rapidly growing digital finance ecosystem.
Deputy Senate President Barau Jibrin announced the passage of the bill during plenary after lawmakers overwhelmingly supported it through a voice vote.
The bill was sponsored by Jibrin and presented by Senate Chief Whip Tahir Monguno.
The legislation seeks to introduce a structured regulatory environment for cryptocurrency exchanges and other digital asset operators in Nigeria.
Under the proposal, all cryptocurrency exchanges and virtual asset service providers would be required to obtain licences and comply with transparency, reporting and operational standards.
The bill also aims to establish safeguards that would protect investors while promoting accountability among operators in the sector.
Supporters of the legislation believe a clear legal framework will help formalise the industry and encourage responsible participation in digital finance.
Why Lawmakers Say Regulation is Necessary
Leading the debate on the bill, Monguno said Nigeria remains one of the largest adopters of cryptocurrency and virtual assets in Africa, yet lacks a comprehensive legal framework governing the sector.
According to him, millions of Nigerians, particularly young people, are actively involved in cryptocurrency trading, blockchain development and fintech innovation.
He argued that the absence of clear regulations has exposed investors to financial risks and created opportunities for fraudulent and illicit activities to flourish.
Monguno noted that technological innovation is rapidly transforming global financial systems and that Nigeria must adapt to remain competitive in the evolving digital economy.
Several lawmakers expressed concern that Nigeria has been slower than some African countries in developing regulatory frameworks for digital assets.
Senator Lola Ashiru, representing Kwara South, pointed to countries such as Kenya, South Africa and Ghana, which have made significant progress in integrating and regulating virtual assets within their financial systems.
He argued that Nigeria should move quickly to catch up with global trends and take advantage of opportunities within the digital economy.
According to supporters of the bill, a well-regulated cryptocurrency industry could attract investment, create jobs and strengthen the country’s position as a technology hub.
