Nigeria is currently planning to introduce legislation to legalize the use of bitcoin and cryptocurrencies, a sign of support for the crypto industry.
Based on one of the local newspapers, Babangida Ibrahim, chairman of the Committee on Capital Markets and Institutions of the Nigerian House of Representatives, revealed details of the new law that aims to amend the existing “Investment and Securities Act 2007″ to recognize Bitcoin as legal capital for investment.
Once the bill is signed into law, the Nigerian Securities and Exchange Commission will recognize cryptocurrencies and other digital funds as capital for investment. In a statement, Ibrahim emphasized the need for an efficient and vibrant capital market in the country, where recent developments with global practices are a necessity.
"Recently, there have been many changes in the capital market, especially with the introduction of digital currency, commodity exchange and many other important things, which should be taken into account in the new Act."
The development comes nearly two years after Nigeria's central bank banned banks from providing crypto exchange services. The notice from the CBN also mandates banks to freeze the accounts of any individual or entity involved in crypto trading activities.
Despite the ban, Nigeria has emerged as one of the fastest growing users of Bitcoin in the world. It has 50% monthly active crypto traders, the highest in the world based on a recent report by global research firm Morning Consult. The growing appetite for the asset class comes amid a falling Naira, with Bitcoin and stablecoins holding more priority for many Nigerians looking to protect their wealth.
Recently, Nigerian authorities partnered with crypto exchange Binance to develop a digital economy zone focused on crypto- and blockchain-related businesses.
A year after launching its own central bank digital currency, eNaira, Nigeria announced cash withdrawal limits in a bid to drive adoption of alternative payments, a move expected to affect more than 200 million people.
The CBN imposed a new limit on over-the-counter withdrawals at just $225 a week for individuals and $1,123 for businesses.
The African country's cashless policy also limits ATM cash withdrawals to $45 a day, with only $0.45 in paper money. Meanwhile, customers can still withdraw larger amounts in some circumstances but will incur a processing fee of between 5% and 10%.
