Tinubu Signs Order to Regulate Virtual Assets in Nigeria

On Friday, President Bola Ahmed Tinubu signed an executive order aimed at coordinating the regulation of virtual assets in Nigeria. This order introduces a new framework designed to harmonize regulations and promote responsible innovation within the country's digital economy.

The executive order, effective immediately, was signed pursuant to Section 5 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended). It seeks to improve collaboration among financial regulatory agencies, including the Central Bank of Nigeria, Nigerian Revenue Service, and Securities and Exchange Commission, to protect Nigerians from fraudulent operations and strengthen the integrity of the financial system.

The rapid growth of virtual assets has created regulatory overlaps and gaps, exposing the country to risks such as money laundering and cybercrime. To address these issues, a Virtual Asset Council will be established, chaired by the Central Bank of Nigeria, with the aim of developing a harmonized legal framework for virtual assets.

The council will also oversee the implementation of a regulatory sandbox to test virtual asset products.