Nigeria Senate advances bill to regulate crypto exchanges

Nigeria’s Senate has advanced a bill that could create formal rules for crypto firms and virtual asset operators.

The Virtual Asset Service Providers Regulation Bill, 2026, passed second reading on Tuesday and moved to committee review. The proposal seeks licensing, compliance rules, and consumer protection measures for one of the world’s largest crypto markets.

Nigeria Senate moves crypto bill forward

The Senate advanced the bill, listed as SB 956, after lawmakers debated digital asset oversight. Deputy Senate President Barau Jibrin sponsored it, while Senate Chief Whip Mohammed Monguno presented it. The bill now goes to the Senate Committee on Capital Market for further review. 

The committee can examine the proposal, consider amendments, and invite public input. Passing second reading does not make the bill law. It must still pass committee review, third reading, and other required legislative stages.

The proposal seeks a legal and supervisory structure for virtual assets, digital assets, and service providers. It would place crypto exchanges and related operators under licensing requirements. The bill also proposes transparency and compliance rules for firms serving Nigerian users. Lawmakers said these measures would help reduce fraud and improve market order.

Bill targets licensing and global standards

The legislation seeks to align Nigeria’s crypto rules with international standards. Its backers cited frameworks linked to the Financial Action Task Force and International Monetary Fund. The bill would require virtual asset service providers to follow anti-money laundering rules. It would also support counter-terrorism financing controls across crypto operations.

Under the proposal, operators of exchanges and blockchain-based investment platforms would need licenses. Other digital asset service providers would also face regulatory standards Lawmakers said the current regulatory gap leaves major activity outside official oversight. They argued that investments, jobs, and revenue remain harder to track without clear rules.

Senate Whip Tahir Monguno said Nigeria trails some African peers on virtual asset laws. He pointed to Kenya, South Africa, and Ghana as countries developing related frameworks. The sponsor said the bill does not seek to block innovation. He framed it as a way to promote order, confidence, accountability, and consumer protection.

Crypto market awaits committee review

Nigeria remains one of the world’s most active crypto markets by adoption. Users rely on digital assets for remittances, cross-border payments, inflation hedging, and global financial access. The country’s crypto policy has changed over time. Banks once faced restrictions on servicing crypto firms, but regulators later moved toward structured oversight.

Recent efforts have included registration pathways for digital asset providers. The new bill seeks to combine scattered rules into a clearer legal framework. Lawmakers linked the proposal to President Bola Tinubu’s $1 trillion economy target. They argued that unregulated crypto activity limits the digital economy’s official contribution.

If passed, the bill would increase compliance duties for exchanges and other operators. However, supporters said clear rules could help legitimate firms attract investment. The next stage will determine the bill’s final shape. Its impact will depend on committee changes, licensing details, and final implementation rules.