Nigeria is seeking to legalize the use of bitcoin and cryptocurrency with a new bill

Nigeria plans to push a law to legalize the use of bitcoin and cryptocurrencies, reflecting its position on the industry.

According to a local newspaper, Babangida Ibrahim, Chairman of the House Committee on Capital Markets and Institutions in Nigeria, has revealed the details of a new law that seeks to amend the existing “Investment and Securities Act 2007” to recognize Bitcoin as legal capital. for investment.

cipher regulation

Once the bill is signed into law, the Nigerian Securities and Exchange Commission will recognize cryptocurrency and other digital funds as investment capital. In a statement, Ibrahim stressed the need for an effective and vital capital market in the country, which is necessary to modernize it with international practices.

“Recently, there have been a lot of changes in the capital market, especially with the introduction of digital currencies, commodity exchange and many other necessary things, which the new law should provide for. As I said, it is better to talk about this after looking at the reports. “.

This development comes nearly two years after the Central Bank of Nigeria banned banks from serving cryptocurrency exchanges. The CBN announcement also mandated banks to terminate the accounts of any individual or entity involved in cryptocurrency trading activities.

Despite the ban, Nigeria has emerged as one of the fastest growing bitcoin users in the world. It has 50% of active adult crypto traders each month, the highest percentage in the world according to a recent report by global research firm Morning Consult. The growing appetite for the asset class comes amid the collapse of the Naira, as Bitcoin and stablecoins hold a greater preference for many Nigerians looking to protect their wealth.

Recently, Nigerian authorities partnered with cryptocurrency exchange Binance to develop a digital economic zone focused on cryptocurrency and blockchain-related businesses.

Nigeria’s push for a cashless society

A year after launching its own central bank digital currency – eNaira – Nigeria has announced limits on cash withdrawals in a bid to push the use of alternative payments, a move expected to affect more than 200 million people.

CBN introduced new OTC withdrawal limits of just $225 per week for individuals and $1,123 for businesses.

The African country’s cashless policy also limits ATM withdrawals to $45 per day, with bills of just $0.45 and smaller denominations of machines available. Meanwhile, customers will still be able to withdraw larger amounts in some cases, but will be charged a processing fee of between 5% and 10%.

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