Nigerian Senate Backs Crypto Regulation to Strengthen Naira

The Nigerian Senate Committee on Capital Markets has supported cryptocurrency trading regulation to strengthen the local currency and safeguard investors. The committee's move follows worries about Nigeria's confusing digital asset policy, which might hurt the country's economy.

The committee chairman, Osita Izunaso, noted Nigeria's inconsistent cryptocurrency legislation. The Nigerian Securities and Exchange Commission (SEC) has indicated a readiness to regulate crypto assets, but the CBN has consistently suppressed its expansion. Inconsistency has confused and may cost the nation economically.

Izunaso made these statements after the committee heard from recently appointed Nigerian SEC director-general Emomotimi Agama. Izunaso said that Nigerians have continued to trade crypto despite the CBN's attempts, making regulation the only feasible option. Nigeria may lose out owing to its ambiguous cryptocurrency posture, he said.

The February 2021 CBN order banned banks from supporting crypto transactions. Policy changed when previous CBN governor Godwin Emefiele left. Reversing this command was a great step toward balance.

However, Binance was raided for accused currency speculators when the naira rapidly depreciated against the U.S. dollar earlier this year. Global crypto exchanges were ordered to delist the naira, and Binance was punished for currency manipulation.

Nigeria is one of the top five Bitcoin-interested nations despite these hurdles. This shows how important Bitcoin is to the economy.

To protect the naira, Izunaso advised Bola Tinubu to build capital and crypto markets. He believed that improving these markets would increase financial system liquidity and reduce economic pressure on the local currency.

“That's hammering the naira and making it weaker against other currencies. However, developing our capital market and crypto market will increase system liquidity. That will ease our issues ”Izunaso said.

Pro-innovation Emomotimi Agama promises to revive the Nigerian capital market. He wants to launch creative initiatives that create world-class firms and change the market narrative. Agama supports the committee's recommendation for a more organized and regulated crypto ecosystem to attract investments and boost economic development.

In conclusion, the Nigerian Senate Committee on Capital Markets wants explicit cryptocurrency trading regulations. This step is crucial for investment protection and naira strengthening. The committee's call to action aims to enhance Nigeria's economy and stabilize its currency via digital assets.