Nigeria’s Federal Inland Revenue Service (FIRS) plans to propose a new law to the National Assembly to regulate cryptocurrency in the country.
Modernizing Nigeria’s Tax System
FIRS Executive Chairman Zacch Adedeji announced this during a recent session with the National Assembly’s Finance Committees. The bill, expected to be introduced in September, is part of a broader effort to overhaul Nigeria’s tax system. The new bill aims to regulate the growing cryptocurrency industry to maximize its benefits for the economy while minimizing potential risks. Adedeji emphasized the necessity of clear and comprehensive rules to protect the economy and called for collaboration between FIRS and lawmakers to draft and implement the proposed bill.
SEC’s Role in Crypto Regulation
The Securities and Exchange Commission (SEC) of Nigeria has already taken steps to amend its regulations on digital asset issuance, platforms, exchanges, and custody services. These amendments aim to enhance the regulatory framework to better respond to the evolving digital asset markets. Recent appointments to the SEC board, approved by Nigerian President Bola Tinubu on April 19, 2024, mark a new era in financial regulation. The new board members, including Director-General Katuka, Executive Commissioner of Legal and Enforcement Emomotimi Agama, and Executive Commissioner of Operations Bola Ajomale, are expected to play a crucial role in this process.
Crypto Community's Reaction
Meanwhile, the crypto community has also urged Nigeria's government and regulators to adopt responsible measures for regulating virtual assets rather than excessive clampdowns to revitalize the market.
The proposed FIRS bill and the efforts by the SEC aim to create a more modern and efficient tax and financial system in Nigeria, better accommodating the advancement of digital technologies and the cryptocurrency market.
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