The Senate has passed for second reading a bill seeking to establish a legal framework for regulating cryptocurrency transactions and virtual asset operations in Nigeria.
The proposed legislation aims to strengthen investor protection, improve transparency in the digital asset market and provide regulatory oversight for cryptocurrency exchanges and Virtual Asset Service Providers (VASPs).
The bill scaled second reading during plenary on Tuesday after receiving the support of lawmakers and was subsequently referred to the Senate Committee on Capital Market for further legislative scrutiny.
The committee has been mandated to conduct a public hearing and submit its report within four weeks.
Leading the debate on the bill, Tahir Monguno, senate chief whip said Nigeria could no longer afford to operate without a comprehensive regulatory structure for the rapidly expanding digital asset sector.
According to him, millions of Nigerians are already active participants in the digital economy through cryptocurrency trading, blockchain technology and fintech innovations.
“This bill speaks directly to the realities of our time, a time when technology is reshaping the global financial system and redefining how people earn, trade, save and invest,” Monguno said.
He noted that despite being one of the leading adopters of cryptocurrency in Africa, Nigeria lacks a clear legal framework to regulate the sector, exposing investors to fraud and other financial risks.
The lawmaker argued that the absence of regulation has created opportunities for market manipulation, cybercrime and illicit financial activities.
Several senators who contributed to the debate expressed support for the bill, describing it as a necessary step towards strengthening Nigeria’s digital economy.
Senator Oyelola Ashiru of Kwara South questioned Nigeria’s slow pace in embracing virtual asset regulation compared to other African countries.
“I wonder why Nigeria is always lagging behind in taking very necessary initiatives. Countries like Kenya, South Africa and Ghana have already covered a lot of mileage,” he said.
Ashiru urged lawmakers to accelerate the legislative process to ensure Nigeria remains competitive in the global digital finance space.
Also supporting the bill, Senator Adetokunbo Abiru of Lagos East acknowledged the growing relevance of technology-driven financial systems but advised lawmakers to harmonise the proposal with existing financial and investment laws.
“There is no doubt that the times we live in call for a bill of this nature because we live in an era of technology,” Abiru said.
He, however, stressed the need for a coordinated regulatory approach to avoid overlapping provisions within the financial sector.
On his part, Senator Shuaib Salisu of Ogun Central warned that failure to regulate virtual assets could encourage illegal activities and undermine confidence in the sector.
“If you do not provide a regulatory framework for this sector, it will go under the table in a black market environment. Once there is no transparency and activities become opaque, it allows criminal activity to take place,” he said.
Senator Adams Oshiomhole, representing Edo North, also backed the proposal, describing the arguments in favour of the bill as compelling.
If eventually passed by the national assembly and signed into law by President Bola Tinubu, the legislation will require cryptocurrency exchanges and virtual asset operators to obtain licences and comply with regulatory standards.
Supporters of the bill believe the framework will enhance investor confidence, attract investment into Nigeria’s digital economy, promote innovation in blockchain technology and strengthen efforts to curb financial crimes linked to unregulated digital transactions.