Reps Move To Pass Legislation Allowing Crypto Transactions

Reps Move To Pass Legislation Allowing Crypto Transactions

The Nigerian House of Representatives has stated that it will soon pass legislation allowing digital currencies.

This is despite the fact that President Muhammadu Buhari’s regime has consistently prohibited cryptocurrency transactions.

Babangida Ibrahim, Chairman of the House Committee on Capital Markets and Institutions, told Punch Newspaper on Saturday that if the Investments and Securities Act, 2007 (Amendment) Bill is passed and signed into law, the Securities and Exchange Commission will be able to recognize cryptocurrency and other digital funds as capital for investment.

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“We need an efficient and vibrant capital market in Nigeria. For us to do that, we have to be up to date global practices. In recent time, there are a lot of changes within the capital market, especially with the introduction of digital currencies, commodity exchanges and so many other things that are essential, that need to be captured in the new Act,” Mr Ibrahim said.

The chairman of the house committee emphasized the importance of further regulating and changing legislation to accommodate cryptocurrencies, explaining that cryptocurrency regulation was not within the purview of the Central Bank of Nigeria because they were not operated with local accounts.

“All these are some of the issues that we have considered we have to regulate them. It is not that they are illegal but we don’t have regulations for them. So, these are some of the reasons why we need to review the Act and put some regulations for most of the activities,  derivatives, commodity exchanges, digital currencies and so many other things,” he said.

On Wednesday, Mr Ibrahim submitted reports on proposals to reform the capital market.

‘A Bill for an Act to Repeal the Chartered Institute of Stockbrokers Act, Cap. C9, Laws of the Federation of Nigeria, 2004, and Provide for the Establishment of the Chartered Institute of Securities and Investments; and for Related Matters,’ read one of the bills.

The apex bank banned cryptocurrency transactions and the facilitation of payments for cryptocurrency exchanges in February 2021.

The CBN also directed all banks and other financial institutions to identify and close the accounts of anyone or anything operating cryptocurrency exchanges or conducting cryptocurrency transactions.

However, in January, the House of Representatives passed its second reading a bill to repeal the Investment and Securities Act of 2007, and to enact the Investment and Securities Act of 2021.

The bill sought, among other things, to give the Securities and Exchange Commission (SEC) more authority to deal with Ponzi scheme problems, such as entering and sealing up any prohibited schemes and obtaining a court order freezing and forfeiting all assets of such schemes to the federal government.