Babangida Ibrahim, Chairman of the House of Representatives Committee on Capital Markets and Institutions in Nigeria, has revealed that the house may soon pass a law enabling the free use of digital currencies in the country.
According to Ibrahim, the passage of the Investments and Securities Act, 2007 (Amendment) Bill will enable the country’s Securities and Exchange Commission (SEC) to officially recognize cryptocurrency and other digital assets.
The country’s apex bank isn’t left out as well, as the proposed law will spell out the roles of CBN as regards digital assets.
Sometime last week, the house of reps member put forward bills seeking reforms in the capital market. One of the bills titled, ‘A Bill for an Act to Repeal the Investments and Securities Act, 2007 and Enact the Investments and Securities Bill to Establish Securities and Exchange Commission as the Apex Regulatory Authority for the Nigerian Capital Market as well as Regulation of the Market to ensure Capital Formation, the Protection of the Market to ensure Capital Formation, the Protection of Investors, Maintain Fair, Efficient and Transparent Market and Reduction of Systematic Risk.’
The CBN in 2021 had declared a ban on crypto exchange activities, stating it was illegal for all the country’s financial institutions to operate services related to crypto and all accounts related must be closed.
“In recent times, there are lot of changes within the capital market, especially with the introduction of digital currencies, commodity exchanges and so many other things that are essential, that need to be captured in the new Act. As I said, it is better to talk about this after consideration of the reports.”, Ibrahim said.
Stating further, he mentioned that digital currencies have different jurisdictions, but no boundaries, and that’s why users staying in Nigeria can invest in digital assets in any part of the world.
“All these are some of the issues that we have considered we have to regulate them. It is not that they are illegal, but we don’t have regulations for them So, these are some of the reasons we need to review the Act”, he concluded.
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