The stance of governments on whether cryptocurrencies should be legalized or banned varies strongly. Some countries like the US or China have strict policies regarding crypto, but, for example, El Salvador has legalized Bitcoin. It’s one of the most supportive countries in the world regarding crypto. Now there may be a new player joining El Salvador.
Is Nigeria the next “Bitcoin country?”
According to a Nigerian newspaper, Babangida Ibrahim, Chairman of the House of Representatives Committee on Capital Market and Institutions, has stated that Nigeria will soon pass a law legalizing the use of Bitcoin and other cryptocurrencies.
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The bill would make changes to the Investments and Securities Act of 2007 to make Bitcoin an acceptable form of investment capital. This is after Nigeria effectively banned crypto usage in early 2021. Regulated financial businesses were restricted from dealing with cryptocurrencies.
“All these are some of the issues that we have considered we have to regulate them. It is not that they are illegal but we don’t have regulation for them. So, these are some of the reasons why we need to review the Act and put some regulations for most of the activities,” Ibrahim stated.
Despite the government’s ambitions to regulate crypto, Nigeria records higher trading volume in crypto assets over time, mainly in peer-to-peer trading. A major impetus for the most populous country in Africa could come from the proposed regulation if it effectively addresses the rising popularity of Bitcoin and other crypto assets.