Nigeria government begins to recognize the use of Bitcoin and other cryptocurrencies as a way to stay up with “global standards” will reportedly soon be passed.
Following an interview with the chairman of the House of Representatives Committee on Capital Markets, Babangida Ibrahim, Punch Newspapers, a Nigerian publication, broke the news on December 18.
According to the report, the local Securities and Exchange Commission would be able to “recognize bitcoin and other digital monies as capital for investment” if the Investments and Securities Act 2007 (Amendment) Bill were to become law.
Ibrahim emphasized the significance of Nigeria staying current with capital market trends and developments:
“Like I said earlier during the second reading, we need an efficient and vibrant capital market in Nigeria. For us to do that, we have to be up to date [with] global practices.”
The allegation comes nearly 24 months after Nigeria outlawed cryptocurrency trading in February 2021, when the Central Bank of Nigeria (CBN) ordered local cryptocurrency exchanges and service providers to halt operations and ordered banks to shut the accounts of anyone found trading cryptocurrency.
Ibrahim, who presided over Nigeria from 1985 to 1993, is adamant that the law’s passage does not represent a reversal of the ban but rather a secondary examination of the CBN’s authority:
“It is not about [the] lifting of the ban, we are looking at the legality: what is legal and what is within the framework of our operations in Nigeria.”
CBN found that the majority of these investors don’t even have local accounts when bitcoin was first outlawed in Nigeria. Therefore, they fall outside of the CBN’s purview.