Senate, SIBAN partner on legal framework for digital assets
Nigeria has taken a significant step toward establishing cryptocurrency regulations as the Senate revealed a collaboration with the Stakeholders in Blockchain Association of Nigeria to create a legal framework for digital assets and blockchain functions.This partnership was announced on Thursday during a discussion between the Senate Committee on Capital Market, led by Senator Osita Izunaso, and a delegation from SIBAN, headed by its president, Obinna Iwuno.
Iwuno emphasized Nigeria’s increasing importance in the global digital economy, noting that the country ranks second in the world and first in Africa for cryptocurrency adoption.
He mentioned that the suggested legal framework would offer regulatory clarity, enhance investor confidence, and establish Nigeria as a center for blockchain innovation.
"According to the latest data from Chainalysis, blockchain transactions in Nigeria reached an astonishing $59 billion.
“This is just a glimpse of what is possible if we have the appropriate legal framework, policy backing, and regulatory clarity,” stated Iwuno.
He pointed out the urgent need for regulatory clarity, referencing recent developments in the U.S. where President Donald Trump enacted the “Genius Act,” legalizing the use of USD-backed stablecoins.
Iwuno noted that such initiatives are designed to protect the U.S. dollar’s supremacy in the swiftly evolving global financial landscape.
“Nigeria cannot afford to lag behind,” he remarked. “We are already a continental frontrunner, responsible for over 60 percent of Africa’s blockchain adoption. A comprehensive legal framework will enable us to make an even greater impact.”
Senator Osita Izunaso, Chairman of the Senate Capital Market Committee, praised SIBAN for its efforts in fostering a secure and innovative digital economy.
He reiterated the Senate’s dedication to promoting policies that enhance Nigeria’s capital market and encourage growth within the digital asset space.
“We appreciate your commitment to building a safe and dynamic digital economy.
“Your emphasis on blockchain application, investor protection, and capacity development resonates with our committee’s objectives,” he noted.
Other senators, including Victor Umeh, Jibrin Isa, and Mustapha Khabeeb, expressed strong support for legislation to legitimize and regulate cryptocurrency activities in Nigeria.
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