The amendment to the Investment and Securities Act recognizes Bitcoin as investment capital and aims to create a favorable legal framework for the industry, with the aim of attracting investments.
The Nigerian government will approve a bill to Recognize Bitcoin and other cryptocurrencies as legal forms of payment in the country, in an attempt to “update its policies and align with global practices.”
The information, shared by the Nigerian media Punch Newspapers, echoes an interview with Babangida Ibrahim, Chairman of the Capital Markets Committee of the House of Representatives, in which he explains that the government is about to approve an amendment to the Investment and Securities Act of 2007 to recognize Bitcoin and other digital assets as investment capital.
In this regard, the president of the Capital Markets Commission has stressed the need for the country to stay up to date with regard to the trends and the evolution of capital markets.
On this subject, he pointed out that: “We need a efficient capital market and vibrant in Nigeria. To do so, we need to keep up with global practices.”
A turnaround on prohibition policy in Nigeria
The amendment to the Investment and Securities Act of 2007 will mark a 180-degree turn in Nigeria’s crypto policy.
In February 2021, the African country ordered the cryptocurrency exchanges and crypto service providers the cessation of all activityAt the same time, it ordered banks to close all accounts of any person or entity involved in cryptocurrency trading activities.
Despite the obvious change of direction, Ibrahim assures that it is not a radical change in the direction of policy, but a "secondary" review of those powers relating to the Central Bank of Nigeria.
“We are not lifting the ban, we are looking at the legality – what is legal and what falls within the scope of our operations in Nigeria.”
Why was the amendment created in Nigeria?
Following the ban on cryptocurrency trading, the Central Bank of Nigeria realized that most investors They used accounts of foreign entitiesTherefore, the Central Bank had no jurisdiction over them and there was no way to control them.
With the amendment and modification to the Investment and Securities Act of 2007, Bitcoin and other cryptocurrencies are granted legal recognition, while defining the regulatory roles of the Central Bank of Nigeria and the Securities and Exchange Commission in matters relating to digital assets.
The change occurs after the failure in the adoption of the eNaira, Nigeria's central bank digital currency, which has seen adoption below 0,5% since its launch nearly a year ago.
On the other hand, the change has also been driven by the failure of prohibitive policies, as Nigeria is one of the countries in the world with the highest adoption. In fact, since the beginning of the ban, Nigeria has become the country with the highest volume of Bitcoin transactions, second only to the United States.
In this regard, in September, Nigeria entered into talks with Binance to develop a Cryptocurrency-friendly economic zone, with the aim of supporting and attracting companies related to cryptocurrencies and blockchain.
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