Nigerian MP Babangida Ibrahim said the country’s proposed investment and securities amendment bill is set to allow cryptocurrencies as an investment class. punch news report.
An amendment bill that would allow the Nigerian Securities and Exchange Commission (SEC) to recognize cryptocurrencies as investment capital has passed its second public hearing.
About a year ago, the Central Bank of Nigeria (CBN) ordered financial institutions to close bank accounts of entities facilitating crypto-related transactions. However, despite the ban, cryptocurrency trading in Nigeria increased by 16% to over $400 million by February 2022.
The digital and borderless nature of cryptocurrencies makes it difficult for the CBN to indefinitely ban cryptocurrency investments, said Babangida Ibrahim, the chaman of the Nigerian House of Representatives Committee on Capital Markets and Institutions. said.
As a result, the proposed bill seeks to provide a clear framework for crypto-related activities, including commodity exchanges, derivatives and digital currencies, to operate under regulatory oversight.
“Recently, there have been many changes within capital markets, especially the introduction of digital currencies, commodity exchanges and many other important things that need to be incorporated into new legislation.”
Lawmakers said the bill passed a second hearing and is under review by the Commission on Capital Markets and Institutions. It will then be submitted to the House of Representatives for final consideration and approval.
Crypto over CBDC
Nigerians have recently demonstrated a preference for unlicensed cryptocurrencies over government-controlled digital currencies.
Launched in October 2021, Nigeria’s Central Bank Digital Currency (CBDC) has only reached 270,000 users who have executed transactions worth a total of $10 million.
In contrast, 26% of Nigerians reportedly owning at least one crypto asset in 2022, and 63% see crypto as the future of money, so interest in crypto in the country is growing. It’s skyrocketing significantly.according to Business Insider Africa, Nigeria is a leading African destination for crypto adoption.
Side chat with Ray Youssef, CEO of Paxful crypto slatesaid Bitcoin’s success in Nigeria is due to the efforts of young people to push for Bitcoin freedom and postpone government restrictions.