The march towards crypto adoption is fast rising amongst African countries today with the most populous country in Africa set to adopt a new bill that will recognize Cryptocurrencies as approved capitals for investments. This development comes up just a year and ten months after a ban was placed on crypto trading in the country. Is this a good sign for crypto trading in Nigeria today? Can Nigerians freely buy Cryptocurrencies such as Bitcoin, Ethereum (ETH), Cardano, and Ripple using the banks again? What general impact will this have on crypto trading in the country today? This work has addressed these important questions on crypto trading in Nigeria today.
Contents
Understanding the current state of crypto trading in Nigeria today?
Crypto trading in Nigeria has been largely unregulated. The Central Bank of Nigeria (CBN) has hitherto maintained a hostile attitude towards crypto trading in the country hence banning the banks and other financial institutions within the country from facilitating crypto trading.
Despite the ban on crypto trading within the country, the citizens have never slowed down in their involvements in cryptocurrency trading. Thus Nigeria ranks today as the largest market for Cryptocurrency trading in Africa beating many other countries where crypto trading is legal today. Can the new bill being passed on cryptocurrency trading in Nigeria change the story for crypto investors within the country?
Nigeria set to pass a bill to recognize cryptocurrencies as capital for investment
The Nigerian government is currently working on adopting new laws that will support the use of Bitcoin and other cryptocurrencies as legal digital assets and capitals for investment.
This development was disclosed last week’s Sunday by the Chairman of the House of Representatives Committee on Capital Market and Institutions – Mr. Ibrahim Babangida.
According to the report by Babangida, the country will soon pass a bill that would allow the use of cryptocurrencies in the country. This is contained in the Investment and Securities Act of 2007, currently undergoing amendments at the parliament which when passed will enable the Securities and Exchange Commission to recognize cryptocurrency and other digital assets as legal capital for investment. The bill will further define the roles of the CBN and SEC when it comes to regulating cryptocurrencies in the country.
Is the move to regulate crypto in Nigeria in the new amendment bill a good sign for crypto?
The move to regulate crypto in Nigeria could be seen as a positive news for crypto traders in the country today recalling the fact that the country had earlier on in February 2021, banned the banks from facilitating crypto trading within the country and moved to seize the accounts of the citizens found to be dealing on Crypto.
The story is once more changing in the country again as Nigeria is gradually moving into becoming a crypto-friendly nation with the new law set to come into effect soon.
Earlier on in October, Nigeria became the first African country to introduce the use of a Central Bank Digital Currency (CBDC) called e-Naira for making payments within the country. The failure of the citizens to massively embrace the e-Naira due to the ban on cryptocurrency in the country seems to have contributed towards moving the government to give a rethink on the ban on crypto trading today.
Above all, the Nigerian government further entered into a partnership deal with the largest crypto exchange – Binance, to create a more friendly environment that will support the use and promotion of blockchain technology within the country. Therefore approving the said bill will give citizens more freedom to trade Cryptocurrencies using the various crypto exchanges in the country today.
