Nigeria’s Federal Inland Revenue Service (FIRS) is set to propose a bill to regulate the cryptocurrency sector.
At a recent stakeholder engagement with the National Assembly’s Finance Committees, FIRS Executive Chairman Zacch Adedeji reportedly announced plans to propose a bill by the end of 2024.
According to local news media, Adedeji noted that the proposed legislation aims to establish comprehensive guidelines and oversight for the nation’s cryptocurrency sector, address associated risks, and enhance its economic benefits for the country.
“Today, we cannot run away from cryptocurrency. But as we are here today, there is no law anywhere in Nigeria that regulates cryptocurrency. But it is the new thing that is happening, and we cannot run away from them”,
Adedeji reportedly stated.
The report highlighted that the new regulation is part of a broader effort to update Nigeria’s taxation system to match the evolving economic landscape. Adedeji emphasised the need for FIRS to work closely with lawmakers to advance the bill, with an initial version expected to be introduced in September.
Senator Mohammed Musa, Chairman of the Senate Committee on Finance, also addressed the session, noting that cryptocurrency has become a major revenue source. He stated that the proposed bill aims to introduce regulations that will enable Nigeria to generate funds for infrastructure and human capital development.
The recent announcement follows a call from Nigeria’s Minister of Finance, Wale Edun, urging the newly appointed board members of the Securities and Exchange Commission (SEC) to tackle the challenges of cryptocurrency regulation. In a speech during the board’s inauguration in Abuja on July 9, 2024, Edun highlighted the need for stringent oversight to ensure market integrity amidst the rapid evolution of the crypto sector. He cautioned against companies exploiting minimal registration requirements to falsely claim regulatory compliance, warning of potential regulatory arbitrage.
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