The Investment and Securities Bill, which has passed its second hearing, will allow the Nigerian Securities and Exchange Commission (SEC) to recognize cryptocurrencies as investment capital.
Ibrahim Babangida, Chairman of the Capital Markets Committee of the Nigerian House of Representatives, said that the country intends to recognize cryptocurrencies as an investment object in a new investment bill.
The MP explained that about a year ago, the Central Bank of Nigeria (CBN) ordered financial institutions to close the bank accounts of entities facilitating cryptocurrency-related transactions. However, despite the actions of the regulator, by February 2022, cryptocurrency transactions in Nigeria grew by 16%, amounting to more than $400 million.
According to Ibrahim Babangida, the CBN ban was premature and did not take into account the innovation agenda. The head of the committee drew attention to the fact that the bill proposed by the deputies would legalize any activity related to cryptocurrencies, including commodity exchanges, derivatives and digital assets.
Nigerian media reported that residents of the largest port city of Lagos reacted with extreme indignation to reports of the blocking of funds and the termination of operations by the cryptocurrency exchange Atom Asset Exchange (AAX). In an attempt to get their funds back, AAX’s Nigerian clients stormed the exchange’s offices in Lagos, demanding their money back and beating staff along the way.
Source: Bits
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