According to recent updates to the Investments and Securities Act 2007 (Amendment) Bill, Nigeria seems ready to open its arms to digital asset investments. If passed, investors will have a regulated environment to trade the assets.
According to a report from a news outlet in Nigeria, the country is to introduce a new bill that allows crypto activity in the country. The exclusive after the Capital Market and Institutions House of Representatives Committee led meetings to review the Nigerian financial markets. According to the statement by the committee’s chair, Mr. Bababngida Ibrahim, he submitted reforms to the current bills.
Mr, Babangida believes in catching up to global trends to improve Nigeria’s capital market status. As such, a law allowing crypto activity within its financial industry is key. Furthermore, it might be the boost the eNaira needs to thrive in the global digital assets market. So far, the coin’s adoption rate has been at 0.5% since October 2021, a low turnout considering the overall crypto adoption in the country.
The Investments and Securities Act 2007 (Amendment) Bill will mandate the Nigerian SEC to acknowledge BTC and other digital assets as an investment tool if passed. Furthermore, it will further outline the Nigerian Central Bank’s (CBN) role in digital currencies.
Nigeria reevaluating past decision to ban crypto
In February 2021, the CBN banned all crypto activity in Nigeria. Furthermore, it mandated banks to stop handling crypto exchanges and individuals with transactions crypto-related. The decision was an apparent cushioning to the dangers digital assets posed. The warning included hefty fines for any bank that refused to comply.
At the time, many Nigerian citizens turned to crypto and other digital assets as an alternative investment pathway. However, with crypto’s growing adoption in Nigeria, banning the assets was killing a growing spark for many. Additionally, the crypto space was perfectly thriving, with most coins reaching all-time highs. The ban translated to crypto enthusiasts probably missing out on the opportunities at the time.
Nonetheless, now that the tabling of the new bill is underway, Mr. Babangadi believes it a secondary step to providing a regulatory environment for the fast-growing sector. He insisted that the move provides legality of what financial investments thrive in Nigeria.
Joining the global sector
Mr. Babangadi expects Nigeria to join the ‘vibrant’ financial markets. He acknowledged the ever-changing innovations worldwide, with digital assets making a huge part of the process. He also outlined the decentralized and cross-border capabilities of the investments. These factors enable anyone to trade with other enthusiasts anywhere globally.
He outlined that their digital nature is one of the reasons the CBN banned crypto assets. While investors in Nigeria resulted in foreign accounts to trade their assets, the CBN had no way to regulate them. He believes the bill will stipulate all the necessary factors to create a functional environment for such investments.
