Nigeria May Support Bitcoin and Cryptocurrencies, New Report Shows

The cryptocurrency market and bitcoin popularity in Nigeria has increased in recent years. Despite the 2021 government ban on crypto trading, Nigerians continued to engage in cryptocurrency-related activities. Most citizens became more interested in crypto to gain financial freedom.

A report published by The Punch News after interviewing the House Committee on Capital Markets Chairman Babangida Ibrahim said that the Nigerian Securities and Exchange Commission will recognize cryptocurrencies as a capital investment if an amendment to the Investment and Securities Act 2007 is passed into law. .

The Nigerian capital market must align with global practices, Ibrahim Babangida

Ibrahim Babangida said there is need for Nigeria to keep pace with the trends and developments in the capital markets. In his words, Nigeria needs an efficient and energetic capital market and to achieve that, the country must align itself with global practices.

This development came about two years after the Central Bank of Nigeria (CBN) banned crypto activities, mandating banks to close crypto-related accounts. In addition, the CBN also ordered local crypto exchanges and service providers to cease operations.

However, Ibrahim Babangida is of a different opinion. The ex-President of Nigeria insists that passing the law does not mean a total lifting of the ban, but a review of what part of crypto is within the CBN’s purview. Ibrahim believes the law will help them assess the legality of crypto.

He further explained that the CBN could not monitor crypto investors in the first place because most of the accounts were foreign and outside its jurisdiction. However, all this will change with the approval of amendments to the Investment and Securities Act of 2007.

Apart from legalizing cryptocurrencies, there will be a clear regulatory overview of how the CBN and the Nigerian SEC will oversee digital assets. The consideration comes as the Nigerian central bank’s digital currency receives a low usage rate of 0.05% 12 months after its launch.

Curiosity continues to rise among Nigerians amid bitcoin and crypto bans

Government efforts to enforce the crypto ban have proved futile as Nigerian bitcoin curiosity increased. According to a study by CoinGecko in April, Nigeria ranked first among countries with the highest bitcoin curiosity.

Bitcoin price is rising on the l BTCUSDT chart on Tradingview.com

Despite the February 2021 crypto ban, bitcoin adoption continued to increase. Nigeria closely followed the United States in bitcoin trading volume from January to August 2021.

Nigerians have continuously explored options to avoid inflation and Naira devaluation, hence the increased interest in crypto. In September, Nigeria began discussions with Binance to create a crypto-friendly ecosystem to facilitate digital assets and blockchain-related businesses in the country.

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