Key Ideas:
- The LBank supports Nigeria's initiatives to make cryptocurrency an acceptable investment option.
- In Nigeria, a nation of more than 200 million people, major legislation has been suggested that will promote the use of bitcoin.
- The legislation initiative comes at a time when financial institutions in Nigeria are subject to a nearly two-year-old cryptocurrency ban.
LBank applauds Nigeria's push to recognize cryptocurrency as investment capital. Nigeria has proposed important measures that will further encourage the use of bitcoin in the nation of over 200 million people.
If the Investments and Securities Act, 2007 (Amendment) Bill is passed, the Nigerian Securities and Exchange Commission (SEC) will recognize cryptocurrencies and other digital assets as capital for investment. The proposed measure will specify the responsibilities of the Central Bank of Nigeria and the nation's SEC with regard to cryptocurrencies, according to Babangida Ibrahim, chairman of the House of Representatives Committee, in an interview with local media source Punch.
Ibrahim underlined that the bill is a reevaluation of what is permissible within the present legal framework rather than a complete departure from the current stringent standards. However, he believes that this country needs to keep up with advancements in the global economy. In a press statement from September, the Nigerian Export Processing Zones Authority (NEPZA) stated that it was thinking about working with cryptocurrency exchange Binance to create a virtual free zone to promote economic growth.
For additional information, the legal strategy was announced at a time when the country's CBDC, the eNaira, has not been widely adopted and financial institutions have been prohibited from using cryptocurrencies for nearly two years. Since its beginning in October 2021, the CBDC has garnered support from just 0.5% of the populace.
The legal system might prevent the eNaira from being adopted further. Basically, this bill will broaden the adoption of cryptocurrencies. As a result of the regulation of this asset class, we might see taxation and legal registration if you want to start something in the blockchain industry, according to Anointing Aha, Community Manager for Nigeria at global cryptocurrency exchange LBank.
Although nothing is guaranteed, Nigeria seems to be headed toward higher adoption. Early in the following year, there will be a presidential election; much will depend on the new leader.
