Nigerian Senate Advances Cryptocurrency Regulation Bill

The Nigerian Senate has advanced a cryptocurrency regulation bill to establish a legal regulatory framework for virtual assets and protect the digital economy from fraud. Sponsored by Deputy Senate President Jibrin Barau, the bill proposes mandatory licensing and compliance requirements for cryptocurrency exchanges.

During the debate, Senator Tahir Monguno presented the bill on behalf of Barau, emphasizing that Nigeria lags behind several African countries in regulating its rapidly growing digital finance sector. Lawmakers supported the bill, arguing it would protect investors from fraud and exploitation while preserving opportunities for growth in the cryptocurrency ecosystem, particularly for young Nigerians.

The bill aims to address three main challenges: preventing the market from going underground, reducing criminal activity, and ensuring contributions to the digital economy are not undermined. The proposed legislation aligns with international standards set by the Financial Action Task Force (FATF) and the International Monetary Fund (IMF).

The Senate referred the bill to the Capital Market Committee for further scrutiny, with a report expected within four weeks.