Report: Nigerian Lawmakers Set to Pass Law That Diminishes Central Bank Influence on Crypto

Report: Nigerian Lawmakers Set to Pass Law That Diminishes Central Bank Influence on Crypto

Nigeria is expected to designate cryptocurrency as capital for investment if the country’s House of Representatives votes to approve a bill that seeks to amend the Investments and Securities Act of 2007, a report has said. A Nigerian lawmaker, Babangida Ibrahim, suggested that the Central Bank of Nigeria (CBN) is not well positioned to regulate cryptocurrencies. The CBN and SEC Feud

The Nigerian House of Representatives is expected to pass a bill that seeks to give the country’s securities regulator the right to designate cryptocurrency as capital for investment, a report has said. The bill, which seeks to amend the Investments and Securities Act of 2007, reportedly clarifies the roles of Nigeria’s two regulators that have jostled to control the crypto industry.

As previously reported by Bitcoin.com News, the Central Bank of Nigeria (CBN) seemingly assumed crypto control after directing financial institutions to block crypto entities. The CBN’s Feb. 5 directive was issued just a few months after the Nigerian Securities and Exchange Commission (NSEC) designated crypto assets securities.

Following the CBN’s abrupt decision, the Nigerian securities regulator said the guidelines that it had issued in September 2020 would be suspended. The NSEC also promised to engage the CBN over the matter.

Central Bank Not Well-Positioned to Regulate Crypto

Explaining why Nigeria needs to regulate digital currencies, Babangida Ibrahim, the chairperson of the legislative body’s Committee on Capital Market and Institutions, said: 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. In recent time[s], 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.

Concerning the CBN’s directive and the central bank’s attempts to consolidate its control of the crypto industry, Ibrahim said the apex bank is not ideally placed to regulate cryptocurrencies because many digital currency investors “don’t even use local accounts.” According to Ibrahim, this situation justifies the legislative body’s plan to amend the Securities Act.

Also, in his remarks during an interview with Punch Nigeria, the lawmaker said the objective of the House of Representatives is not to take sides but to follow the law.

“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. The CBN is regulating financial markets and the Securities Exchange Commission regulates the capital market,” Ibrahim reportedly said.

Register your email here to get a weekly update on African news sent to your inbox:

Tags in this story Babangida Ibrahim, CBN directive, Central Bank of Nigeria (CBN), Cryptocurrency regulation, Nigeria Securities and Exchange Commission, regulatory framework

What are your thoughts on this story? Let us know what you think in the comments section below. Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route. Indian Government Updates Parliament on Cryptocurrency Bill and Investigations of Crypto Exchanges REGULATION | 19 hours ago Basel Committee Finalizes Rules for Bank Exposure to Cryptocurrency Assets REGULATION | 1 day ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleMeta Will Continue to Push Metaverse Investments in 2023 According to Head Of Reality Labs Next articleBitcoin, Ethereum Technical Analysis: ETH Back Above $1,200 as Bank of Japan Policy Decision Impacts Markets Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItCentral Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year

The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.NFT Sales Volume Saw a Small Uptick This Week — Moonbirds, Mutant Apes Take Top Sales Bill ‘On Digital Currency’ Caps Crypto Investments for Russians, Opens Door for Payments FBI Issues Alert Concerning Malicious State-Sponsored North Korean Hackers Targeting Crypto Firms Microbt Reveals Latest Bitcoin Mining Rigs — Machines Produce up to 126 TH/s With Custom 5nm Chip Design