The LBank Supports Nigeria To Legalize Cryptocurrency As An Investment Asset

Key Points:

• The LBank backs Nigeria’s efforts to legalize cryptocurrency as a form of investment.

• Nigeria has proposed significant legislation that will encourage the usage of bitcoin in the country of over 200 million people.

• The legislation initiative comes at a time when Nigeria has been under a cryptocurrency ban for nearly two years for financial institutions.

LBank Applauds Nigeria’s Push to Recognize Cryptocurrency as Investment Capital, in which Nigeria has proposed significant laws that will further foster bitcoin use in the country of over 200 million people.

The Nigerian Securities and Exchange Commission (SEC) will recognize cryptocurrencies and other digital assets as capital for investment if the Investments and Securities Act, 2007 (Amendment) Bill is passed. In an interview with local media outlet Punch, Babangida Ibrahim, Chairman of the House of Representatives Committee, stated that the proposed bill will outline the roles of the Central Bank of Nigeria and the country’s SEC in reference to cryptocurrencies.

Ibrahim emphasized that the bill is not a full departure from existing restrictive regulations, but rather a reassessment of what may be done within the current legal framework. He does feel, however, that this nation must stay up with global economic developments. In September, the Nigerian Export Processing Zones Authority (NEPZA) announced in a news release that it was considering collaborating with cryptocurrency exchange Binance to build a virtual free zone to stimulate economic growth.

For more information, the legal plan comes at a time when this country has been under a cryptocurrency ban for financial institutions for nearly two years, and the country’s CBDC, the eNaira, has failed to achieve widespread adoption. Since its inception in October 2021, the CBDC has attracted barely 0.5% of the population’s support.

The legal framework may impede further adoption of the eNaira. “Essentially, this bill will increase cryptocurrency acceptance. We may see taxation and legal registration if you want to establish something in the blockchain sector as a result of regulation of this asset class,” says Anointing Aha, Community Manager for Nigeria at global crypto exchange LBank.

Nigeria appears to be moving toward greater adoption, but nothing is certain. The presidential election is coming up early next year, and a lot will depend on the incoming president.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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