The Nigerian Senate has taken a significant step toward establishing a regulatory framework for digital assets. A bill aimed at overseeing virtual asset service providers has passed its second reading, signaling a shift toward formal oversight in one of the world’s largest crypto markets.
The proposed legislation, known as the Virtual Asset Service Providers Regulation Bill, 2026, advanced after a session where lawmakers deliberated on the need for clearer rules. The bill’s sponsor, Deputy Senate President Barau Jibrin, and Senate Chief Whip Mohammed Monguno, who presented it, emphasized the importance of licensing, compliance, and consumer protection. The next phase involves review by the Senate Committee on Capital Market, which will consider amendments and public input before further readings.
This initiative aims to create a legal structure for virtual assets, requiring exchanges and other operators to obtain licenses. It also proposes transparency measures and anti-money laundering protocols aligned with global standards from organizations like the Financial Action Task Force. Lawmakers believe such rules will curb fraud and enhance market order, while also supporting counter-terrorism financing efforts.
Nigeria is a leading hub for crypto adoption, with users leveraging digital assets for remittances, cross-border payments, and inflation hedging. The country’s regulatory approach has evolved, moving from restrictions on banks servicing crypto firms to a more structured oversight. This bill seeks to consolidate scattered rules into a cohesive framework, supporting President Bola Tinubu’s goal of a $1 trillion economy by integrating the digital economy officially.
While the bill’s passage would impose compliance duties on exchanges, supporters argue it could attract investment and boost confidence. The committee review will shape the final version, with details on licensing and implementation yet to be determined. For now, the crypto industry awaits the next steps in this legislative journey.