The Nigerian Senate is poised to revise the Banks and Other Financial Institutions Act (BOFIA) 2020, acknowledging the need for updated regulations to keep pace with the fast-changing fintech landscape. As emphasized in the official statement, this move comes as lawmakers express concerns over the systemic risks posed by large fintech operators to the national economy.
Outdated Regulations
Senator Adetokunbo Abiru emphasized that the existing BOFIA 2020, initially crafted to oversee fintech operations, has become outdated. The proposed amendments are set to introduce a national registry for fintech companies, which will enhance transparency and accountability within the sector.
Strengthening Regulatory Authority
Additionally, the amendments aim to bolster the regulatory authority of the Central Bank of Nigeria, enabling it to better oversee fintech activities and mitigate potential risks. Consumer protection frameworks will also be strengthened, ensuring that users of fintech services are safeguarded against fraud and other financial malpractices.
As the Nigerian Senate moves to update fintech regulations, the cryptocurrency community is also facing uncertainty with Binance's unconfirmed POWERUSDT perpetual contract launch. For more details, see read more.
