LBank Welcomes Nigeria’s Willingness to Recognize Crypto as Investment Capital

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Nigeria has come up with a significant legislative design that will further facilitate the adoption of cryptocurrency in the country of over 200 million people.

Why it matters: If the Investments and Securities (Amendment) Bill 2007 is passed, the Nigerian Securities and Exchanges Commission (SEC) will recognize cryptocurrencies and other digital assets as equity capital. ‘investment.

Babangida Ibrahim, Chairman of the House of Representatives Committee, shared in an interview with local media outlet Punch, that the bill will clarify the roles of the Central Bank of Nigeria and the country’s SEC with respect to cryptocurrencies. currencies. Ibrahim said the bill is not a complete departure from the restrictive laws in place, but only a review of what could be done within the current legal framework. However, he believes Nigeria needs to keep up with global economic innovations. Notably, the Nigerian Export Processing Zones Authority (NEPZA) said in a press release in September that it was considering partnering with crypto exchange Binance to create a virtual free zone to promote economic growth.

Going further: The legal blueprint comes at a time when Nigeria has spent nearly 2 years under a cryptocurrency ban for financial institutes, and the country’s CBDC, eNaira, has failed to be widely adopted.

Since the launch of the CBDC in October 2021, it currently stands at an adoption rate of only 0.5% among the population. Further approval of eNaira may be hampered by the legal draft. This bill will essentially create greater adoption of cryptocurrencies. With the regulation of this asset class, we could start to see taxation and legal registration if you want to build something in the blockchain space, says Anointing Aha, Community Manager for Nigeria at Global Exchange of crypto LBank. For now, Nigeria appears to be moving towards further adoption, but nothing is set in stone. The presidential election in Nigeria is approaching early next year, and much will depend on the new president, adds Aha.

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