The House of Representatives’ ad hoc Committee on Cryptocurrency recently met with key stakeholders from the crypto industry to discuss a proposed Virtual Asset Law aimed at regulating digital assets.
The meeting brought together representatives including Senator Ihenyen, executive chair of the Virtual Assets Service Providers Association of Nigeria (VASPA), who urged lawmakers to end the era of fear surrounding crypto and adopt a unified legal framework for responsible innovation and adoption.
Despite the Investment and Securities Act of 2025 recognizing digital assets as securities, tensions remain. The Central Bank of Nigeria (CBN) still treats crypto with caution, limiting direct engagement with digital asset providers. This, combined with overlapping regulatory mandates among the CBN, SEC, and National Security Adviser (NSA), has created confusion and limited growth for startups.
Senator Ihenyen stressed that the CBN cautious approach, though well-intentioned, fails to inspire confidence and that the ongoing web restrictions by the NSA contradict efforts to develop the sector and may violate various financial regulations.
The proposed Virtual Asset Law aims to resolve these issues with key recommendations, which includes;
- Clear division of regulatory responsibilities to avoid agency turf wars
- Risk-based classification of tokens to support innovation without compromising security
- Tiered licensing to lower barriers for startups while scaling oversight
- Formal recognition and regulation of peer-to-peer crypto trading
If enacted, the law would transform Nigeria’s crypto landscape by integrating digital assets into the formal capital market system with clearer compliance and consumer protections.
Lawmakers showed genuine engagement in understanding operators’ perspectives, and the committee is expected to continue consultations before drafting legislation, aiming for a harmonized legal framework with cross-agency support.
