The House of Representatives has announced that it will soon pass legislation to allow digital currencies in Nigeria.
This is despite the ongoing ban on cryptocurrency transactions by the President Muhammadu Buhari regime.
The Chairman of the House Committee on Capital Markets and Institutions, Babangida Ibrahim, told Punch newspaper on Saturday that the Investments and Securities Act 2007 bill (amendment) bill, when passed and signed into law, would allow the Securities and Exchange Commission; recognize cryptocurrency and other digital funds as investment capital.
“We need an efficient and vibrant capital market in Nigeria. To do this, we need to be up-to-date with global practices. There are a lot of changes in the capital market in recent times, especially with the introduction of digital currencies, commodity exchanges and many other important things that should be included in the new act,” said Mr. Ibrahim.
The chairman of the House Committee emphasized the need for further regulation and amendment of legislation to accommodate cryptocurrencies, explaining that the regulation of cryptocurrencies is not within the jurisdiction of the Central Bank of Nigeria as they do not operate on local accounts.
“All these are some problems that we have considered that we should settle. It is not that they are illegal, but we do not have regulations for them. So these are some of the reasons why we need to review the law and set some regulations for most of the activities: derivatives, commodity exchanges, digital currencies and many other things,” he said.
On Wednesday, Mr. Ibrahim presented reports on proposals for capital market reform efforts.
One of the bills is entitled “An Act to repeal the Chartered Institution of Stock Brokers Act, ch. C9, Laws of the Federation of Nigeria, 2004, and provides for the establishment of a Chartered Institute of Securities and Investments; and for related issues.”
In February 2021, the apex bank banned cryptocurrency transactions and facilitating payments for cryptocurrency exchanges.
The CBN has further directed all banks and other financial institutions to trace and close the accounts of any or anyone involved in cryptocurrency exchanges or transactions in cryptocurrency.
However, in January, a bill that seeks to repeal the Investments and Securities Act of 2007 and enact the Investments and Securities Act of 2021 passed a second reading in the House of Representatives.
The bill sought, among other things, to give the Securities and Exchange Commission (SEC) more powers to deal with problems caused by Ponzi schemes, including entering and closing prohibited schemes and a court order to freeze and forfeit all schemes. the assets of such schemes to the federal government.