Nigeria will adopt a draft law on the recognition of cryptocurrencies

According to media reports, Nigerian authorities are planning to adopt a draft law legalizing the use of the first cryptocurrency and other digital assets in the near future.

Thus, if the amendments to the Draft Law on Investments and Securities of 2007 finally pass, cryptocurrencies, as well as other digital funds, could be considered by the local SEC as capital for investment.

According to Babangidou Ibrahim, Chairman of the House Committee on Capital Market and Institutions, Nigeria needs an efficient and dynamic capital market. To do this, Ibrahim said, it is necessary to keep up with global practices.

On top of that, he pointed out that despite the country’s prohibition, Nigerians were still using digital assets. In this regard, the official highlights the need to regulate the market and define the roles of the local central bank and the SEC in this.

It is worth noting that in December, the Nigerian government imposed withdrawal restrictions as part of the promotion of cashless alternatives and increased use of the national digital currency eNaira.

Meanwhile, in August, the central bank reported that the local CBDC was used for transactions totaling 4 billion Nigerian naira, roughly equivalent to $9.3 million